Credits 4. If a taxpayer has a brownfield or qualifying historic preservation credit before December 31, 2011, and elects to claim the credit as refundable for 90% of the amount on the certificate on January 31, 2012, has the taxpayer made the ele
This FAQ currently does not reflect changes in the law. It is being reviewed and is expected to be revised in the coming months.
Yes, the taxpayer has made the MBT election by claiming the refund and must file an annual MBT return at the end of its tax year. Section 510(1) states that a taxpayer with:
a certificate of completion, assignment certificate, or component completion certificate [for a brownfield credit] or a certificate of completed rehabilitation, assignment certificate, or reassignment certificate [for an historic preservation credit] … may elect to claim a refundable credit for 90% of the amount of that certificate or any carryforward remaining from that certificate, whichever is less.
The taxpayer is permitted to file the claim for refund as early as January 1, 2012, and is not required to wait until the end of its tax year. MCL 208.1510(1). The Department must pay the refund within 60 days of receiving the taxpayer's claim. Id. The act of requesting the refund makes the election for the taxpayer to continue under the MBT. Therefore, the taxpayer remains subject to all provisions of the MBT and nothing in the statute excuses the taxpayer from the general requirement to file an annual return (provided that the taxpayer's gross receipts exceed the filing threshold). MCL 208.1505(1).
This answer also applies to a taxpayer that elects to claim the balance of a special high community impact historic preservation credit at 86%. MCL 208.1510(2).