Credits 19. If a taxpayer holds a certificated credit that will not be immediately available (for example, a battery credit in 2015) must the taxpayer file under the MBT for 2012-2014 in order to use the credit?

Yes. MCL 206.680 and 208.1500 provide that, for certificated credits other than the historic preservation credit and the brownfield rehabilitation credit, a taxpayer that has been approved to receive, has received, or has been assigned a certificated credit must elect to file a return and pay the tax imposed by the MBT for the taxpayer's first tax year ending after December 31, 2011. MCL 208.1500 requires a taxpayer electing to file an MBT return to file an MBT return for each tax year thereafter until the certificated credit and any carryforward from that credit are used up.

Therefore, the taxpayer awarded the battery credit must make an irrevocable election in the first tax year ending after December 31, 2011, and file and pay under the MBT if it wants to claim the certificated credit, even if the taxpayer may not be able claim the credit until years after the election year. Once the taxpayer elects to file under the MBT, it must calculate both its MBT liability and its pro forma CIT tax liability each year it is required to file under the MBT, until the certificated credit and any carryforward are used up. MCL 208.1500(4).