Michigan Renaissance Zone Credit Schedule

Renaissance Zone Credit Schedule
4595, 2024 Michigan Business Tax Renaissance Zone Credit Schedule
Attachment 12

Michigan Department of Treasury
4595 (Rev. 04-24), Page 1 of 2

2024 MICHIGAN Business Tax Renaissance Zone Credit Schedule
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

1. Tax liability before Renaissance Zone Credit. Enter amount from Form 4573, line 13, or Form 4596, line 14.......
2. Enter property information below. If operating in multiple Zones, file a separate Form 4595 for each Zone:
Street Address

Zone or Subzone

City

Parcel Number

Check if a
certificated credit
(see instructions)

3. Average value of property owned within the Zone..................................................................................................
4. Multiply rent paid for property within the Zone by 8 and enter the result.................................................................
5. Total property value within the Zone. Add lines 3 and 4..........................................................................................
6. Average value of all property owned in Michigan....................................................................................................
7. Multiply rent paid for property in Michigan by 8 and enter the result.......................................................................
8. Total property value in Michigan. Add lines 6 and 7................................................................................................
9. Divide line 5 by line 8 and enter as a percentage...................................................................................................
10. Total payroll for services performed within the Zone...............................................................................................
11. Total Michigan payroll..............................................................................................................................................
12. Divide line 10 by line 11 and enter as a percentage................................................................................................
13. Add lines 9 and 12 and enter as a percentage........................................................................................................
14. Business Activity Factor. Divide line 13 by 2 and enter as a percentage................................................................
15. Credit based on the Business Activity Factor. Multiply line 14 by line 1..................................................................
Adjusted Services Performed in the Renaissance Zone
16. Enter amount from line 10................................................................................. 16.
00
17. Enter depreciation for tangible property in the Zone exempt under MCL
211.7ff. Claim property exempt in tax year; also claim new property that will
be exempt in immediately following tax year (see instructions)........................ 17.
00
18. Add lines 16 and 17............................................................................................................................................
19. Partnerships, S Corporations and Individuals Only (see instructions); UBGs, see instructions
a. Business income from Form 4567, line 28. If less than zero, enter zero......... 19a.
00
%
b. Apportionment percentage from Form 4567, line 11c.................................. 19b.
%
c. Enter percentage from line 14...................................................................... 19c.
d. Multiply line 19a by line 19b by line 19c....................................................... 19d.
e. Add lines 18 and 19d.................................................................................... 19e.
20. Enter amount from line 18, or, if taxpayer is a Partnership,
S Corporation or Individual, enter amount from line 19e...................................

20.

22. Taxpayers first located within the Renaissance Zone before 12-01-2002 ONLY.
(All others, leave lines 22a-e and line 23 blank.)
a. Renaissance Zone Credit allowed in 2007................................................... 22a.
b. Michigan payroll in 2007............................................................................... 22b.
c. Business Activity Factor for tax year 2007 and enter as a percentage........ 22c.
d. Divide line 11 by line 22b and enter as a percentage................................... 22d.
e. Divide line 14 by line 22c and enter as a percentage................................... 22e.
23. Multiply line 22a by line 22d by line 22e............................................................................................................

00
00
00
00
00
00

18.

00

21.

00

23.

00

24.

00

25b.

00

00

%

00
00
%
%
%

00

00
00
%
%
%

24. Tentative Renaissance Zone Credit. Taxpayers first located in Zone before 12-01-2002, enter the greater of
(i) line 23 or (ii) the lesser of lines 15 and 21. All others, enter the lesser of lines 15 and 21................................
%
25. a. Reduced credit percentage from Reduced Credit Table on page 2.............. 25a.
b. Reduced Renaissance Zone Credit. Multiply line 24 by the reduced credit percentage on line 25a.
Carry amount to Form 4573, line 14, or Form 4596, line 15............................................................................

0000 2024 95 01 27 1

3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

00
00

21. Credit based on adjusted services performed in the Zone. Multiply line 20 by 10% (0.10)................................

+

00

1.

2024 Form 4595, Page 2 of 2

REDUCED CREDIT TABLE
If this tax period begins in the:

The reduced credit is:

Final year of designation as a Renaissance Zone.................25 percent (0.25) of tentative credit on line 24.
Year immediately preceding the final year of designation
as a Renaissance Zone..........................................................50 percent (0.50) of tentative credit on line 24.
Second year before the final year of designation as a
Renaissance Zone................................................................ 75 percent (0.75) of tentative credit on line 24.
Third (or greater) year before the final year of designation
as a Renaissance Zone......................................................... 100 percent (1.00) of the tentative credit on
line 24.

+

0000 2024 95 02 27 9

Instructions for Form 4595
Michigan Business Tax (MBT) Renaissance Zone Credit Schedule
Purpose
To allow eligible taxpayers to calculate and claim the
Renaissance Zone Credit. For standard taxpayers and financial
institutions, the credit is calculated on Form 4595 and then
carried to the MBT Miscellaneous Nonrefundable Credits
(Form 4573). Insurance companies will carry this credit to the
Miscellaneous Credits for Insurance Companies (Form 4596).
NOTE: If a person is located and has business activity in
more than one Renaissance Zone, use a separate Form 4595 to
calculate the credit for each Zone. For each line that requires
Zone-specific data, enter data based only on business activity
in the Zone identified on line 2 of this copy of the form.

Renaissance Zone Credit
The Renaissance Zone Credit encourages businesses and
individuals to help revitalize a designated Zone by providing a
credit for businesses located and conducting business activity
within the Zone. The method of calculating the credit is
different for businesses first locating and conducting business
activity within the Renaissance Zone before December 31,
2002, and those businesses first locating and conducting
business activity within the Renaissance Zone after December
30, 2002.
Use this form to calculate both a certificated and noncertificated renaissance zone credit. Check the certificated
credit box if the credit being calculated is a certificated
renaissance zone credit. File a separate Form 4595 for each
zone and type (certificated or non-certificated) of credit.
Beginning January 1, 2012, only those taxpayers with a
certificated credit, which is awarded but not yet fully claimed
or utilized, may elect to be MBT taxpayers. A taxpayer with
a certificated renaissance zone credit may make the election to
remain taxable under the MBT for its first tax year ending after
December 31, 2011.
The certificated renaissance zone credits are the following
types of zones for which the taxpayer has a development
agreement with the Michigan Strategic Fund (MSF) before
January 1, 2012:
•	
•	
•	
•	

agricultural processing,
border crossing,
forest products processing,
Michigan strategic fund designated renewable energy
renaissance zones,
•	 AND the tool and die renaissance zones for which
the taxpayer has entered into a qualified collaborative
agreement with the MSF before January 1, 2012.
A taxpayer located in a designated renaissance zone that does
not have a certificated renaissance zone credit but which makes
the election to remain taxable under the MBT on the basis
of another certificated credit may also claim this credit. For
more information on certificated credits see the Schedule of

Certificated Credits (Form 4947).
EXAMPLE 1: Taxpayer enters into a qualified collaborative
agreement with the MSF and locates and begins conducting
business in a tool and die renaissance zone on January 1, 2011.
Taxpayer may elect to continue under the MBT on the basis of
this certificated renaissance zone credit.
EXAMPLE 2: Taxpayer located and began conducting
business in a designated renaissance zone on January 1, 2011;
however, the renaissance zone does not qualify as a certificated
credit for purposes of the MBT election (see the certificated
renaissance zone credits listed previously in these instructions).
The taxpayer also holds a certificated anchor company credit.
Taxpayer may make the election to remain taxable under the
MBT on the basis of its certificated anchor company credit and
continue to claim the non-certificated renaissance zone credit
once it has properly elected the MBT.
To obtain the credit an otherwise qualified taxpayer must file
an MBT annual return. The credit is equal to the lesser of the
following:
•	 The tax liability attributable to business activity conducted
within the Renaissance Zone in the tax year.
•	 10 percent of adjusted services performed in the designated
Renaissance Zone.
•	 For a taxpayer located and conducting business activity in
the Renaissance Zone before December 1, 2002, the credit is
equal to the greater of the two results below:
Result 1
○	 The lesser of 1) the business activity conducted within
the zone (from line 15) OR 2) the adjusted services
performed in the zone (from line 21)
Result 2
○	 The product of the following:
•	
The Single Business Tax (SBT) Renaissance
Zone Credit claimed for the tax year ending in 2007.
•	
The ratio of the taxpayer’s payroll in this
State in the tax year divided by the taxpayer’s payroll
in this State in its SBT tax year ending in 2007.
•	
The ratio of the taxpayer’s Renaissance Zone
Business Activity Factor for the tax year divided by the
taxpayer’s Renaissance Zone Business Activity Factor
for its SBT tax year ending in 2007.
The credit allowed continues through the tax year in which the
Renaissance Zone designation expires and is nonrefundable.
Business activities relating to a casino, including operating
a parking lot, hotel, motel, or retail store, cannot be used to
calculate this credit. Businesses delinquent in filing or paying
Property Tax, SBT, MBT or City Income Tax as of December
31 of the prior tax year are not eligible for this credit. Taxpayers
will be notified if a claimed credit is disallowed.
For more information on Renaissance Zones, contact

149

the
Michigan
Economic
Development
Corporation
(MEDC) at (517) 373-9808 or visit their website at
http://www.michiganadvantage.org/. For information on the
MBT credit, contact the Michigan Department of Treasury,
Customer Contact Division, MBT Unit, at (517) 636-6925.

Special Instructions for Unitary Business Groups
If the entity located and conducting business activity in the
Renaissance Zone is a member of a Unitary Business Group
(UBG), the Renaissance Zone Credit must be calculated at
the member entity level. Calculation of the Renaissance Zone
Credit should be done before elimination of intercompany
transactions, such as rent payments by the member claiming
this credit to another member of the UBG.
Include this form as part of the UBG’s combined annual return.
If more than one member is eligible for this credit, complete
one Form 4595 for each eligible member (or multiple forms for
a member that is located and has business activity in multiple
Zones) and include all of them as part of the UBG’s annual
return. If filing multiples of Form 4595, enter the total of line
25b for all members on Form 4573, line 14.
When this form refers to “taxpayer,” it is referring to the UBG
member completing this form.

Line-by-Line Instructions
Lines not listed are explained on the form.
Name and Account Number: Enter name and account number
as reported on page 1 of the annual return.
UBGs: Complete one form for each member for whom this
schedule applies (or multiple forms for a member that is located
and has business activity in more than one Zone). Enter the
Designated Member (DM) name in the Taxpayer Name field,
followed by the DM’s Federal Employer Identification Number
(FEIN), and the specific member of the UBG for which this
form is filed, and its FEIN, 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.
Line  1:	Enter the tax liability before the Renaissance Zone
Credit.
UBGs: This must be a pro forma tax liability of the member
whose activity is represented on the form. See guidance on
pro forma calculations in the “Supplemental Instructions for
Standard Members in UBGs” section in the MBT Forms and
Instructions for Standard Taxpayers (Form 4600).
Line  2:	Enter the street address and parcel number of the
property. Enter the name of the Zone or Subzone in which the
property is included.
Check the certificated credit box if the Renaissance Zone
designation is based on a Development Agreement or a
Qualified Collaboration Agreement.
BUSINESS ACTIVITY CONDUCTED WITHIN
THE RENAISSANCE ZONE
Line 3: Determine the average value of property by averaging
the values at the start and end of the tax period. The State

150

Treasurer may require the periodic averaging of values during
the tax year if reasonably required to reflect properly the
average value of a taxpayer’s property. Property owned by the
taxpayer is valued at its original cost.
Line 4: Property rented by the taxpayer is valued at eight (8)
times the net annual rental rate. Net annual rental rate is the
annual rental rate paid by the taxpayer less any annual rental
rate received by the taxpayer from subrentals.
ADJUSTED SERVICES PERFORMED IN THE
RENAISSANCE ZONE
Line  17: Enter the amount deducted in arriving at federal
taxable income (as defined for MBT purposes) for the tax
year for depreciation, amortization, or accelerated writeoff for tangible property in a Zone exempt under Michigan
Compiled Law (MCL) 211.7ff. Claim property exempt in
the tax year; also claim new property that will be exempt
in the immediately following tax year (i.e., property that
has not been subject to, or exempt from, the collection of
taxes under the General Property Tax Act and has not been
subject to, or exempt from, ad valorem property taxes levied
in another state, except that receiving an exemption as
inventory property does not disqualify property).
Line 19: Only a person reporting under an MBT organization
type of Individual, Partnership, or S Corporation should
complete line 19. This includes a Limited Liability Company
(LLC) that files its federal return as a Partnership or S
Corporation.
NOTE: A person that is a disregarded entity for federal income
tax purposes under the internal revenue code shall be classified
as a disregarded entity for the purposes of filing the MBT annual
return. This means that a disregarded entity for federal tax
purposes, including a single member LLC or Q-Sub, must file as if
it were a sole proprietorship if owned by an individual, or a branch
or division if owned by another business entity.
Line 19a: UBGs: Enter the business income from the MBT
UBG Combined Filing Schedule for Standard Members,
Form 4580, Part 2A, line 30, for the member whose activity is
reported on this copy of Form 4595.
Insurance companies and financial institutions: These types
of taxpayers do not calculate business income as their tax base.
For Renaissance Zone credit purposes, however, they must
calculate and enter here pro forma business income. Use the
Business Income Worksheet (Worksheet 4746), in Form 4600,
to calculate business income. Attach that worksheet to the
return. See MCL 208.1201 for further guidance.
Line 19b: UBGs: Enter the pro forma apportionment
percentage from Form 4580, Part 2A, line 16a, for the member
whose activity is reported on this copy of Form 4595.
Insurance companies and financial institutions: Unlike
standard taxpayers, these types of taxpayers do not apportion
their tax base by a sales factor. For Renaissance Zone credit
purposes, however, they must calculate pro forma sales in
Michigan and sales everywhere, and enter here a pro forma
apportionment percentage based on those figures. See
instructions for Form 4567 for guidance on the definition of
sales and applicable sourcing provisions.

Line 20: Enter amount from line 18, or, if the taxpayer is an
Individual, Partnership, S Corporation, or an LLC federally
taxed as a Partnership or S Corporation, enter amount from
line 19e.
TAXPAYERS FIRST LOCATED WITHIN THE
RENAISSANCE ZONE BEFORE 12-31-2002 ONLY
Due to Public Act 282 of 2014, instructions that applied to
taxpayers first located within the Renaissance Zone before
12-31-2002 now apply to taxpayers first located within the
Renaissance Zone BEFORE 12-01-2002.
Line  22: Taxpayers first located within the Renaissance Zone
before December 1, 2002, ONLY (all others, leave lines 22a
through 22e blank). A taxpayer that is located and conducting
business activity in two Zones will prepare two copies of Form
4595. Base each copy on the taxpayer’s history in the Zone
being reported.
Line 24: The following is an adjustment due to Public Act
282 of 2014.
For taxpayers first located within the Zone before
December 1, 2002
Step 1: Determine the lesser of line 15 and line 21.
Step 2: Determine the greater of line 23 and the result of
Step 1. Enter this amount on line 24.
All other taxpayers
Enter the lesser of line 15 and line 21.
Lines  25a and 25b: For a tax year that begins within one of
the last three years of the Zone’s designation, a reduced credit
is allowed, as follows:
•	 For a tax year that begins within the second year before the
final year of designation as a Renaissance Zone, 75 percent
of the normally calculated credit is allowed.
•	 For a tax year that begins within the year before the final
year of designation as a Renaissance Zone, 50 percent of the
normally calculated credit is allowed.
•	 For a tax year that begins within the final year of
designation as a Renaissance Zone, 25 percent of the
normally calculated credit is allowed.
Line 25b: Multiply line 24 by the reduced credit percentage
provided in the Reduced Credit Table. Carry amount to line 14
of the MBT Miscellaneous Nonrefundable Credits (Form 4573),
or line 15 of the MBT Miscellaneous Credits for Insurance
Companies (Form 4596).
If filing multiple 4595 forms, enter the total of line 25b for
all Zones on Form 4573, line 14, or Form 4596, line 15, as
applicable.
Include completed Form 4595 as part of the tax return filing.

151