Insurance Companies/Financial Institutions 5. Financial Institutions are required to calculate the net capital tax base using a five year look-back period to find the average of net equity and certain deductions. Should a CIT taxpayer lo

Yes. MCL 206.655 requires a financial institution to compute its net capital tax base "by adding the financial institution's net capital as of the close of the current tax year and preceding 4 tax years and dividing the resulting sum by 5." This look-back period will require taxpayers to use data from MBT years for the first 4 tax years under the CIT.