Michigan Investment Tax Credit Recapture from Sale of Assets Acquired Under Single Business Tax

Investment Tax Credit Recapture from Sale of Assets Acquired Under Single Business Tax
4585, 2024 Michigan Business Tax Investment Tax Credit Recapture from Sale of Assets Acquired Under Single Business Tax
Attachment 05

Michigan Department of Treasury
4585 (Rev. 04-24), Page 1 of 2

2024 MICHIGAN Business Tax Investment Tax Credit Recapture
From Sale of Assets Acquired Under Single Business Tax
Issued under authority of Public Act 36 of 2007.

Taxpayer Name (If Unitary Business Group, Name of Designated Member)

Federal Employer Identification Number (FEIN) or TR Number

Unitary Business Groups Only: Name of Unitary Business Group Member Reporting on This Form

Federal Employer Identification Number (FEIN) or TR Number

PART 1:  CALCULATION OF SINGLE BUSINESS TAX (SBT) INVESTMENT TAX CREDIT (ITC) RECAPTURE BASES

Each row in lines 1-3 is for assets acquired in an SBT tax year and disposed of this year. Enter years in date order, with the oldest listed first. Columns B
and C are totals by acquisition year. Line 1, column D, and Line 2, column E: For all years, enter MBT apportionment percentage from Form 4567, line 11c.
Enter amounts in whole dollars (no cents).

Depreciable Tangible Assets
A
B
1.
Taxable Year (End Date)
In Which Disposed
Assets Were Acquired
(MM-DD-YYYY)

Combined Sales Price
of Disposed Assets by
Year of Acquisition

Depreciable Mobile Tangible Assets
A
B
2.
Taxable Year (End Date)
Combined Sales Price of
In Which Disposed
Disposed Assets by
Assets Were Acquired
Year of Acquisition
(MM-DD-YYYY)

C

D
Apportionment
Percentage

E

Apportioned
Gain/Loss

Net Gain/Loss From
Sale of Assets

From Form 4567, line 11c

Multiply Column C
by Column D

C

D

E

Adjusted Proceeds

Apportionment
Percentage

Net Gain/Loss From
Sale of Assets

Subtract Column C
From Column B

From Form 4567, line 11c

F

SBT ITC Recapture
(Base 1)
Subtract Column E
From Column B

F

SBT ITC Recapture
(Base 2)
Multiply Column D
by Column E

Assets Transferred Outside Michigan
A
B
3.
Taxable Year (End Date)
In Which Disposed
Assets Were Acquired
(MM-DD-YYYY)

+

SBT ITC Recapture
Combined Adjusted Federal Basis of
Disposed Assets by Year of Acquisition
(Base 3)

0000 2024 75 01 27 3

Continue on Page 2.

2024 Form 4585, Page 2 of 2

FEIN or TR Number
UBG Member FEIN or TR Number

PART 2:  CALCULATION OF SBT ITC RECAPTURE RATES

Enter amounts from ALL prior SBT C-8000ITC forms filed for tax years beginning on or after January 1, 2000. Enter SBT tax years in date order. Enter
amounts in whole dollars only (no cents).

4.

A

B

C

D

(MM-DD-YYYY)

Net Capital Investment
(C-8000ITC, Line 24)

SBT ITC
(C-8000ITC, Line 33)

SBT ITC Used
(C-8000ITC, Line 36)

Return For
Taxable Year
Ending

E
Effective
Percentage Rate of
SBT ITC by Year
%
%
%
%
%
%
%
%
%

Enter amounts from Form 4569, line 3, for all periods ending in 2008 or 2009.

5.

A

B

(MM-DD-YYYY)

SBT ITC Carryforward Used
(Form 4569, line 3)

Return For
Taxable Year
Ending

PART 3: CALCULATION OF SBT ITC RECAPTURE AMOUNTS
Enter amounts in whole dollars only (no cents).

6.

A

Taxable Year (End Date)
In Which Disposed
Assets Were Acquired
(MM-DD-YYYY)

B

C

Total SBT ITC Recapture Base
by Year of Acquisition
Add Amounts from Columns 1F, 2F and 3B

Year-Specified Recapture
Percentage Rate from
Line 4, Column E
%
%
%
%
%
%
%
%
%

7. TOTAL. Enter total of Line 6, column D. Add this amount to the total of Form 4570, Worksheet 2
(in instructions), column U, if applicable, and carry the sum to Form 4570, line 19..........................

+

0000 2024 75 02 27 1

D
Recapture Amount
Multiply Column B by Column C

7.

00

Instructions for Form 4585
Michigan Business Tax (MBT) Investment Tax Credit Recapture
From Sale of Assets Acquired Under Single Business Tax
Purpose
To calculate the Investment Tax Credit (ITC) recapture amount
for the disposition or transfer of tangible, depreciable real or
personal property acquired in tax years beginning after 1999 and
prior to 2008 which must be recaptured to the extent used and at
the rate used under the Single Business Tax (SBT) or MBT. Form
4585 must be filed as a supporting form for the total recapture
amount reported on the MBT Credits for Compensation,
Investment and Research and Development (Form 4570).
NOTE: Recapture is mandatory even if a taxpayer is otherwise
not required to file a return because it does not meet the filing
threshold of $350,000.

Public Act 282 of 2014
PA 282 of 2014 provides for a change to the Investment Tax
Credit (ITC) Recapture. For assets purchased, acquired,
or transferred into Michigan in a tax year beginning after
December 31, 2007, that were sold or otherwise disposed of, or
transferred outside Michigan during the tax year, recapture is
now required to the extent and at the rate the credit was used
under the MBT. The amount on line 7 of this form will be used
on Form 4570. Taxpayers need to take special care to read the
instructions for Form 4570, line 19.

Line-by-Line Instructions
Lines not listed are explained on the form.
REMINDER: Report all amounts in whole dollars. Round
down amounts of 49 cents or less. Round up amounts of 50
cents or more. If cents are entered on the form, they will be
treated as whole dollar amounts.
Dates must be entered in MM-DD-YYYY format.
Name and Account Number: Enter name and account number
as reported on page 1 of Form 4567.
UBGs: Complete one form for each member that disposed of
capital assets that trigger SBT ITC credit recapture.  Enter the
Designated Member (DM) name in the Taxpayer Name field
and the specific member of the UBG for which this form is
filed on the line below. On the copy filed to report the DM’s
data (if applicable), enter the DM’s name and account number
on each line.
UBGs: If capital asset subject to recapture is from a member
that was not part of the group in the tax year the asset was
acquired (and other years since the acquisition), take care
to report in this line (and the others that pertain to years the
member was not part of the group) information requested in
each column only from the member’s single filings, not the
group’s.
PART 1: CALCULATION OF SBT ITC RECAPTURE BASES
In Part 1, compute the adjusted proceeds (proceeds include any

benefit derived) from the disposition of tangible, depreciable
real or personal property that was acquired in a tax year
beginning after 1999 and prior to 2008, and the recapture for
property moved out of state. The calculation of gross proceeds
may be reduced by selling expenses. Lines 1, 2, and 3 represent
three different categories of SBT ITC assets, categorized by
type of asset or nature of disposition.
NOTE: A sale of qualifying property reported on the installment
method for federal income tax purposes causes a recapture of
the entire gross proceeds in the year of the sale. The recapture
is reduced by any gain reported in federal taxable income in
the year of the sale. The gain attributable to the installment sale
that is reported in subsequent years increases the credit base (or
reduces other sources of recapture) for those years, and must be
reported either on line 1, column C, or line 2, column C, based on
the type of asset.
Line 1: For depreciable tangible assets located in Michigan that
were acquired or moved into Michigan after acquisition in a tax
year beginning after 1999 and prior to 2008, and were sold or
otherwise disposed of during the tax year, enter the following:
•	 Column A: Separate the depreciable tangible assets that
were disposed of during the filing period by the tax year
in which they were acquired. Use a separate row for each
acquisition year. Enter the tax years of acquisition (end dates
only) in chronological order, starting with the first tax year
beginning after 1999. An acquisition year for which there
were no dispositions of depreciable tangible assets during
the filing period may be omitted. However, do not omit the
acquisition year of depreciable tangible assets that have
been sold on an installment method if gains attributable to
installment payments received during the current filing
period must be reported.
•	 Column B: Total gross proceeds from all depreciable tangible
assets that were acquired in the same taxable year and
disposed of during the filing period. If a qualifying asset was
sold on an installment sale in a prior filing period, the entire
sale price was reported for recapture purposes in the year of
sale. Therefore, if a payment was received on that installment
sale in the current filing period, do not report that amount as
gross proceeds for this period. See Column C, however, with
respect to the gain from that installment payment.
•	 Column C: Net total gains/losses reflected in federal
taxable income from all depreciable tangible assets that
were acquired in the same taxable year and disposed of
during the filing period. Report also in column C any
gain reflected in federal taxable income that is attributed
to an installment payment received during the current
MBT filing period, from a prior installment sale of an
asset that was of a type and acquisition date covered by
line 1. For property placed in service prior to January 1,
2008, gain reflected in federal taxable income is equal to the
gain reported for federal purposes.

137

Keep in your files a separate worksheet with the appropriate
information regarding each depreciable tangible asset located
in Michigan that was acquired or moved into Michigan after
acquisition in a tax year beginning after 1999 and prior to
2008, and was sold or otherwise disposed of during the tax
year. Sum the total gross proceeds and gain or loss for all
disposed assets acquired in the same taxable year. Enter in
this form only the total sum of gross proceeds and gain/loss
grouped by taxable year the assets were acquired. Use one row
per group of disposed assets acquired in the same taxable year.
Start from the earliest acquisition year.

•	 Column C: Net total gains/losses reflected in federal
taxable income from all depreciable mobile tangible assets
that were acquired in the same taxable year and disposed
of during the filing period. Report also in column C any
gain reflected in federal taxable income that is attributed
to an installment payment received during the current
MBT filing period, from a prior installment sale of an
asset that was of a type and acquisition date covered by
line 2. For property placed in service prior to January 1,
2008, gain reflected in federal taxable income is equal to the
gain reported for federal purposes.

•	 Column D: Enter the apportionment percentage from Form
4567, line 11c. If not apportioning, enter 100 percent. Enter
the same apportionment percentage for each row completed.
•	 Column F: Subtract column E from column B for each row.
If column E is a loss, add its positive value to column B for
each appropriate row. A loss in column E will increase the
recapture base.

Keep in your files a separate worksheet with the appropriate
information regarding each depreciable mobile tangible asset
acquired in a tax year beginning after 1999 and prior to 2008,
and sold or otherwise disposed of during the tax year. Sum the
total gross proceeds and gain or loss for all disposed assets
acquired in the same taxable year. Enter in this form only
the total sum of gross proceeds and gain or loss grouped by
taxable year the assets were acquired. Use one row per group
of disposed assets acquired in the same taxable year. Start from
the earliest acquisition year.

Line  2: Mobile tangible assets are all of the following:
•	 Motor vehicles that have a gross vehicle weight rating of
10,000 pounds or more and are used to transport property or
persons for compensation;
•	 Rolling stock (railroad freight or passenger cars,
locomotives or other railcars), aircraft, and watercraft
used by the owner to transport property or persons for
compensation or used by the owner to transport the owner’s
property for sale, rental, or further processing;
•	 Equipment used directly in completion of, or in construction
contracts for, the construction, alteration, repair, or
improvement of property.
For depreciable mobile tangible assets that were acquired in
a tax year beginning after 1999 and prior to 2008, and were
sold or otherwise disposed of during the tax year, enter the
following:

•	 Column D: Subtract figures in column C from figures in
column B for each row. If column C is a loss, add its positive
value to column B for each appropriate row. A loss in
column C will increase the recapture.
•	 Column  E: Enter the apportionment percentage from Form
4567, line 11c. Enter the same apportionment percentage for
each row you have filled columns A through D.
•	 Column  F: Multiply figures in column D by column E for
each row.
Line  3: For depreciable tangible assets other than mobile
tangible assets acquired in tax years beginning after 1996
and prior to 2008, that were eligible for the ITC in tax years
beginning after 1999 and prior to 2008, and were transferred
outside Michigan during the tax year, enter the following:

•	 Column A: Separate the depreciable mobile tangible assets
that were disposed of during the filing period by the tax year
in which they were acquired. Use a separate row for each
acquisition year. Enter the tax years of acquisition (end dates
only) in chronological order, starting with the first tax year
beginning after 1999. An acquisition year for which there
were no dispositions of depreciable mobile tangible assets
during the filing period may be omitted. However, do not
omit the acquisition year of depreciable mobile tangible
assets that have been sold on an installment method if gains
attributable to installment payments received during the
current filing period must be reported.

•	 Column  A: Separate the depreciable tangible assets other
than mobile tangible assets that were transferred out of
Michigan during the filing period by the tax year in which
they were acquired. Use a separate row for each acquisition
year. Enter the tax years of acquisition (end dates only)
in chronological order, starting with the first tax year
beginning after 1999. An acquisition year for which there
were no transfers of depreciable tangible assets out of
Michigan during the filing period may be omitted.
•	 Column  B: Total sum of adjusted federal basis from all
depreciable tangible assets acquired in the same taxable year
and transferred out of Michigan during the filing period.

•	 Column B: Total gross proceeds from all depreciable mobile
tangible assets that were acquired in the same taxable year
and disposed of during the filing period. If a qualifying asset
was sold on an installment sale in a prior filing period, the
entire sale price was reported for recapture purposes in the
year of sale. Therefore, if a payment was received on that
installment sale in the current filing period, do not report
that amount as gross proceeds for this period. See Column
C, however, with respect to the gain from that installment
payment.

Keep in your files a separate worksheet with the appropriate
information regarding each depreciable tangible asset other than
mobile tangible assets acquired in tax years beginning after 1999
and prior to 2008, that were eligible for the ITC in tax years
beginning after 1999 and prior to 2008, and were transferred
outside Michigan during the tax year. Sum the total adjusted
federal basis for all such transferred assets acquired in the same
taxable year. Enter in this form only the total sum of adjusted
federal basis grouped by taxable year the assets were acquired.
Use one row per group of such transferred assets acquired in the
same taxable year. Start from the earliest taxable year.

138

PART 2: CALCULATION OF SBT ITC RECAPTURE RATES
Recapture rates can be calculated using any of 3 methods
described in the “Method Summary Table”   below. The Table
highlights the methods’ pros and cons.   Choose your method,
and follow the appropriate instructions to calculate the rates on
line 4, column E.
NOTE: Whichever method used, the calculated effective
recapture rate of SBT ITC by year cannot be higher than the
figure calculated under Method A for any year.
NOTE ON USING SIMPLEST METHOD: When amount
of SBT ITC used equals the amount of SBT ITC created, the
three methods yield the same result. This occurs in any of the
following situations:
•	 Calendar year filer(*): 2009 MBT Single Business Tax
Credit Carryforwards (Form 4569), lines 2 and 3, are equal
for the latest 2009 tax year return filed;
•	 Fiscal year filer(*): 2008 MBT Form 4569, line 4, equals
zero for the latest 2009 tax year return filed;
•	 Filers(**) who created SBT ITC credits and have filed an
MBT Simplified Return (Form 4583) for either 2008 or 2009
tax year; or
•	 Filers(**) who created SBT ITC credits, have NOT filed
2008 or 2009 MBT return, and have filed MBT return(s) for
tax year(s) after 2009.
(*) For UBGs, the condition applies only for groups where all
members were included in every 2008 and 2009 MBT return
filed by the group.
(**) Filers refers to single filers (non-UBGs) or UBG members
in the current tax year who were not part of a group in 2008
or 2009 and were single filers then. To preserve the SBT
credit carryforward from one year to the next the taxpayer is
required to file Form 4567.

The simplest method that can be used is Method A. Taxpayers
that meet any of the situations above should use Method A.  It
provides correct results using the least amount of data input
from the taxpayer.
Complete line 4 and line 5 according to the method chosen, as
explained below:
•	 Method A:
○	 Line 4, columns A through D: Enter the tax year end
date of each acquisition year of disposed assets that
triggered SBT ITC recapture.   (Those dates should be
the same as appear in column A of lines 1-3.)  For each
year displayed in column A, enter Form C-8000ITC
(SBT Investment Tax Credit) information required in
the appropriate column, using return data specific
from each applicable tax year. If the amount of column
C is zero for a particular year, and the amount on
C-8000ITC, line 10 for that year is larger than zero,
taxpayers may not enter zero on column E if the
taxpayers fall in either of the two categories explained
below, and must do the appropriate calculations as
follows:
1)	 Taxpayers used the straight method to calculate the SBT
liability for that taxable year:  calculate the credit rate as
instructed on C-8000ITC, line 26 for that taxable year,
and enter the result on column E; or
2)	 Taxpayer used the excess compensation reduction
method to calculate the SBT liability for that taxable
year: calculate the credit rate on C-8000ITC, line 26,
for that taxable year; subtract the percentage found on
C-8000S, line 6, from 100%, and multiply the result
of that subtraction by the calculated credit rate on
C-8000ITC, line 26.  Enter the result on column E.
○	 Line 5, columns A and B:  Leave lines blank.  

METHOD SUMMARY TABLE
TYPE OF METHOD
Method A

PROS
CONS
•	 Easy to calculate.
•	 Method does not take into account the extent to
which the ITC was used.
•	 Taxpayer or UBG member disposing of ITC
asset only need to enter information on line 4
for years in which assets that trigger recapture
were acquired.

Method B

•	 Takes into account the extent to which the ITC •	 Taxpayers must fill lines 4, 5, 6, Table I
was used.  
at the end of the instructions, and enter
necessary information in Treasury webtool.
(www.michigan.gov/mbt4585tool)
•	 Information on line 4 must be entered for all
years in which assets were bought and ITC
was claimed, whether or not those assets were
disposed in the current tax year.

Method C

•	 Taxpayers complete line 4, column E.

•	 Taxpayer needs to develop own calculation
procedure that reflects the MBT statute.  Retain
records to substantiate calculation.

139

○	 Line 4, column E: Divide the amount in column C
by the amount in column B, for each taxable year in
column A, and enter as a percentage.

than one return was filed for the same tax year (that
is, the taxpayer filed an amended return), use only the
information from the latest return filed for that tax year.

•	 Method B:
○	 Line 4, columns A through D: Gather all C-8000ITC
forms filed for tax years beginning on or after January
1, 2000. (If an amended C-8000ITC was filed, use the
figures from the amended form, not the original.) Sort
all the returns in chronological order of taxable year end
date, from earliest to latest date.  Starting with the Form
C-8000ITC for the earliest applicable SBT filing period,
enter the information requested on the table for each
taxable year (use one row for each return).
NOTE: For SBT tax years when the taxpayer filed a C-8000
(SBT Annual Return) with no C-8000ITC, or a C-8030 (SBT
Notice of No SBT Return Required), enter on line 4A the
taxable year end date, and enter zero for lines 4B, 4C, and 4D.
Do not enter any information on lines 4A through 4D for SBT
tax years in which the taxpayer filed nothing OR filed a C-8044
(SBT Simplified Return).   If more than one return was filed
for the same tax year (that is, the taxpayer filed an amended
return), use only the information from the latest return filed for
that tax year.

NOTE: For MBT tax years the taxpayer filed Form 4567 and no
Form 4569, enter on line 5A the taxable year end date, and enter
zero for line 5B. Do not enter any information on lines 5A and
5B for MBT years in which the taxpayer filed nothing or filed
a Form 4583. See Note on Using Simplest Method under the
heading Calculation of SBT ITC Recapture Rates on these
instructions. Not filing a Form 4567 does not allow a taxpayer to
preserve SBT credit carryforward from one year to the next.  
UBGs: During tax years ending in 2008 and 2009, UBG
groups were allowed to offset the group liability by
claiming member’s SBT ITC credit carryforward. When
completing line 5, column B, enter the portion  of the total
group SBT ITC credit carryforward used by the group
for each year that pertains to the specific member that is
completing Form 4585. If the member completing Form
4585 was not part of a UBG in 2008 and/or 2009 tax years,
and filed as a non-UBG filer, take care to report on lines
5A and 5B information from the member’s singly filed
returns. Likewise, if the member completing Form 4585
was part of another UBG in 2008 and/or 2009 tax years,
take care to report on line 5A and 5B member information
resulting from using the other UBG’s returns information.

○	 Line 5, columns A and B: Starting with Form 4569 for
the earliest 2008 and latest 2009 applicable MBT filing
period, enter the information requested on table. If more

Example: In 2008, group ABC files MBT return claiming

Table I: Determining Credit Amount that Offsets Credit Recapture
7.
A
B
C

D

Taxable Year
(End Date)
In Which MBT ITC
Disposed Asset Was
Acquired
(MM-DD-YYY)

SBT Capital
Investment Amount
(C-8000ITC, line 10)

SBT ITC Credit Rate
Divide line 4, column C,
by line 4, column B
(See Instructions if zero)

Gross SBT ITC Credit Amount
Multiply column B
by column C

E

F

G

H

Taxable Year
(repeat from
column A)

SBT Recapture Capital
Investment Amount
(C-8000ITC, line 23)

Gross SBT ITC Credit Recapture
Multiply column F by column C

SBT Recapture Amount Offset
by Credit
Lesser of columns D and G

I

J

K

8.

9.

Taxable Year
(repeat from
column A)

140

SBT ITC Credit Amount
That offsets SBT liability
(from webtool)

Total SBT ITC Credit Amount Used
Add columns J and H

L

M

Extent Credit Used Rate
Divide column K
by column D
(cannot be more than 1)

SBT ITC Recapture Rate
Multiply columns C
and L. Carry amount to
Worksheet 4a, line 4,
column E

$1,000,000 in SBT ITC credit carryforward. The group
consisted of Company 1, Company 2,   Company 3, and
Company 4. Company 4’s tax year ended after the tax
year of the group’s Designated Member, so Company
4’s data was not included in group ABC’s 2008 MBT
return, even though Company 4 was part of the UBG.
The total $1,000,000 in SBT ITC credit carryforward
resulted from the sum of $200,000 in SBT ITC credit
carryforward from Company 1, $300,000 from Company
2, and $500,000 from Company 3. In the current year,
Companies 2, 3, and 4 dispose of capital investment
outside of the UBG, which triggers SBT ITC credit
recapture. In the current year, group ABC files MBT
returns. The UBG   fills one MBT Form 4585 for each
Company 2, Company 3, and Company 4, in which is
reported the SBT ITC credit recapture from each member.
When filling Form 4585,line 5, column B for Company
2, report $200,000 – which represents the portion of the
total SBT ITC credit carryforward claimed by the group
in 2008 that corresponds only to Company 2’s SBT ITC
credit carryforward in 2008. When filling Form 4585,
line 5, column B for Company 3, report $500,000 – which
represents Company 3’s portion of the total SBT ITC credit
carryforward claimed by the group in 2008.  When filling
Form 4585, line 5B for Company 4, report $0 – which
represents Company 4’s portion of the total SBT ITC credit
carryforward claimed by the group in 2008.
○	 Line 4, column E: For each taxable year, enter the rates
calculated on Table I, line 9, column M.
○	 Filling Table I at the end of these Instructions (lines
and columns not listed are explained on the table):
•	 Line 7, column A: Enter only taxable years in
which SBT ITC disposed assets were acquired.  
Dates should match those listed on lines 1, 2, and 3,
columns A.  List each date only once.  
•	 Line 7, column C: For each taxable year on line 6,
column A, find the corresponding SBT ITC amount
reported on line 4, column C, and Net Capital
Investment amount reported on line 4, column B.  
Divide amounts from line 4, column C by amounts
from line 4, column B for each taxable year and
enter results here. If the quotient of that division
for a particular tax year listed equals zero, and the
amount on line 7, column B is positive, instead of
zero, enter the following on line 7, column C as
appropriate:  
1) Taxpayer used the straight method to calculate the
SBT liability for that taxable years:   calculated the
credit rate on C-8000ITC, line 26 for that taxable
year, and enter the result here;
2) Taxpayer used the excess compensation reduction
method to calculate the SBT liability for that taxable
year: calculate the credit rate on C-8000ITC, line
26, for that taxable year; subtract the percentage
found on C-8000S (SBT Deductions to Adjusted Tax
Base), line 6, from 100%, and multiply the result
of that subtraction by the calculated credit rate on
C-8000ITC, line 26.  Enter the result here.

•	 Line 9, column J: Enter amount of ITC credit
used provided by the webtool that corresponds
to each taxable year displayed on line 9, column
I. Access the Michigan Department of Treasury
(Treasury) webtool by going to the Treasury site
(www.michigan.gov/mbt4585tool), and enter the
necessary information as instructed).
•	 Line 9, column M: For each taxable year on line
9, column I, multiply line 7, column C by line 9,
column L.   Enter results here.   Match the taxable
year on line 9, column I   with the taxable year on
line 4, column A, and carry amount from line 9,
column M to line 4, column E for each appropriated
tax year line.
•	 Method C:
○	 Line 4, columns A through D: Fill column A, and
leave all others blank.
○	 Line 5, columns A and B: Leave lines blank.  
○	 Line 4, column E: Enter results from the taxpayer’s
own software of choice (that is, a non-Treasury web
tool) or the taxpayer’s own calculation that reflects the
MBT statute.   Retain records to substantiate figures
entered in the filed return.
PART3:CALCULATION OFSBTITC RECAPTURE AMOUNTS
Line 6: Follow the instructions below:
Column A: Enter in chronological order, beginning with
the earliest, the tax year end date of each acquisition year of
disposed assets that triggered SBT ITC recapture from lines 1-3.    
Column B: Separately for each acquisition year listed in
column A, combine the corresponding amounts in line 1,
column F, line 2, column F, and line 3, column B for all
disposed assets that triggered SBT ITC recapture.  
Column C: For each acquisition year listed in column A, enter
the corresponding SBT ITC effective rate from line 4, column
E. Match the acquisition year in line 6, column A, with the
corresponding acquisition year in line 4, column A.
Column D: Multiply column B by column C for each
acquisition year.
Line 7: Add figures in each row of line 6, column D, and
enter the total here.
If no assets purchased in MBT years were disposed of or
transferred out of Michigan this year, carry the amount
reported on this line to Form 4570, line 19.
If any assets purchased in MBT years were disposed of
or transferred out of Michigan this year, add the amount
reported on line 7 of this form to the sum of amounts
calculated on Column U of Worksheet 2 in the instructions
of Form 4570. Report the sum of those two figures on
Form 4570, line 19.   This calculation change implements a
requirement of Public Act 282 of 2014.
Include completed Form 4585 as part of the tax return filing.

141