Michigan Instruction Booklet for Financial Institutions

Instruction Booklet for Financial Institutions
4599, 2024 Michigan Business Tax Forms and Instructions for Financial Institutions
2024 MICHIGAN
Business Tax

Financial Institutions
FORMS AND INSTRUCTIONS

	 E-filing your return is easy, fast, and secure!
	
Visit Treasury’s Web site at www.MIfastfile.org for a list of e-file

resources and how to find an e-file provider.

W W W. M I FA S T F I L E . O R G
This booklet contains information on completing a
M i c h i g a n B u s i n e s s Ta x r e t u r n f o r c a l e n d a r ye a r 2 0 2 4
o r a f i s c a l ye a r e n d i n g i n 2 0 2 5 .

F I LI N G D UE DATE:

CALENDAR FILERS — APRIL 3 0 , 2 0 2 5
F I SCAL FILER S — TH E LAS T DAY O F T HE FO U R T H MON T H
AFTER TH E EN D O F T HE TAX YEAR.

W W W. M I C H I G A N . G OV/ TA X E S
This booklet is intended as a guide to help complete your return. It does not take the place of the law.
Michigan Department of Treasury — 4599 (Rev. 01-25)

Important Information for 2024
Michigan Business Tax (MBT) Election
Only those taxpayers that have been approved to receive, have
received, or have been assigned a certificated credit that has
not yet fully been claimed or utilized may elect to be MBT
taxpayers. If a taxpayer files an MBT return for its first tax
year beginning after December 31, 2011, the taxpayer makes
the election to file and pay under the MBT until the certificated
credit and any carryforward of that credit are exhausted.
Except for taxpayers with certain qualifying brownfield
redevelopment or historical preservation certificated credits,
the election must be made for the first tax year beginning after
December 31, 2011. Once the election is made and the return
is submitted, the taxpayer may not amend the return to revoke
the election. Find a list of certificated credits in the General
Information for Standard Taxpayers in the MBT Forms and
Instructions for Standard Taxpayers (Form 4600).

Helpful Hints for Completing an MBT Return
MBT UBG Combined Filing Schedule for Financial
Institutions (Form 4752)
Members of a UBG will report their data on Form 4752. Once
all member data is combined and eliminations are calculated,
these final figures will carry to Form 4590. All credits claimed
on Form 4752 must be supported by the applicable forms and
these forms must be included when filing the return.

certificate, or reassignment certificate is issued under section
435 to a taxpayer, beginning on and after January 1, 2012,
the taxpayer may elect to claim an accelerated refund for 90
percent of the amount of that certificate.
If section 437 or 435 provides that payment of a credit will be
made over a period of years or limits the annual amount of a
payment, an accelerated refund may only be claimed for the
amount payable in the year claimed.
However, a taxpayer claiming the Special Consideration
Historic Preservation Credit under section 435(20) may elect to
claim an accelerated refund for the balance of the credit, but
the amount of that refund shall be equal to 86 percent of the
amount of the credit.
For more details, see the Request for Reduced Refundable
Credit Payout for the Brownfield Redevelopment Credit and
Historic Preservation Credit (Form 4889). Michigan Tax Forms
are online at www.michigan.gov/taxes. An accelerated credit
refund will be paid within 60 days after Form 4889 is filed.
If a taxpayer files Form 4889 and claims an accelerated credit,
the taxpayer makes the election to file and pay under the MBT
until the certificated credit and any carryforward of that credit
are exhausted. A taxpayer claiming an accelerated credit on
Form 4889 must also file an annual MBT return.

Brief Overview of the CIT

UBG members may have different tax year-ends. The combined
return must include each member whose tax year ends with or
within the tax year of the Designated Member (DM).

The CIT took effect January 1, 2012, and replaces the MBT,
except for certain businesses that wish to claim certificated
credits. Among the highlights of the CIT:

Amended Returns
To amend a current or prior year annual return, complete the
Form 4590 that is applicable for that year, check the box in the
upper-right corner of the return, and attach a separate sheet
explaining the reason for the changes. Include an amended
federal return or a signed and dated Internal Revenue Service
(IRS) audit document. Include all schedules filed with the
original return, even if not amending that schedule. Enter
the figures on the amended return as they should be. Do not
include a copy of the original return with your amended return.

•	 The CIT applies   to all financial institutions unless the
financial institution is able to and does make the MBT
election.
•	 Taxpayers will be required to file quarterly estimated
returns as well as an annual return.
•	 Annual payments will still be due on the prescribed due date
of the annual return.
•	 The CIT is equal to 0.29% of net capital for financial
institutions.
•	 There are no credits available for financial institutions under
the CIT.
•	 An entity that has received, has been approved to receive,
or has been assigned certain certificated tax credits under
MBT may elect to continue to file and pay under the MBT in
lieu of the CIT. This election must be made with the annual
return filed for first tax period beginning after 2011 for most
certificated credits.  The election is also made if a taxpayer
files a Form 4889, Claim for Accelerated Credit.  
•	 Estimated payments will still be due on the prescribed due
dates for quarterly estimated returns.

Accelerated Credits
A taxpayer with a certificated credit under section 435 (Historic)
or 437 (Brownfield) of the Michigan Business Tax Act (MBTA),
or any unused carryforward of such certificated credit that may
be claimed in a tax year ending after December 31, 2011, may
elect to pay the tax imposed by the MBTA in the tax year in
which that certificated credit may be claimed in lieu of the CIT.
If a person with a certificated credit under section 435 or 437
that elects to pay the MBT is a member of a Unitary Business
Group (UBG), the Designated Member of the UBG, and not the
member, shall file a UBG return and pay the tax, if any, under
the MBTA and claim that certificated credit.
For a tax year beginning after December 31, 2011, if a
certificate of completion, assignment certificate, or component
completion certificate is issued under section 437 to a taxpayer,
or if a certificate of completed rehabilitation, assignment

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2024 General Information for Financial Institutions
Standard Taxpayers and Insurance Companies: See the Michigan Business Tax (MBT) Instruction Booklet for Standard Taxpayers
(Form 4600) or the MBT Instruction Booklet for Insurance Companies (Form 4592) at www.michigan.gov/taxes.

This booklet is intended as a guide to help complete the MBT
return. It does not take the place of the law.

•	 MEGA Photovoltaic Technology Credit (Form 4574)
•	 Film Production Credit (Form 4574).

Who Files a Financial Return?

Using This Booklet

Only those taxpayers with a certificated credit, which is
awarded but not yet fully claimed or utilized, may elect to be
MBT taxpayers.  If a taxpayer files an MBT return and claims
a certificated credit, the taxpayer makes the election to file
and pay under the MBT until the certificated credit and any
carryforward of that credit are exhausted. Once the election is
made and the return is submitted, the taxpayer may not amend
the return to revoke the election.

This MBT financial institution booklet includes forms and
instructions for financial institutions. These forms are designed
for calendar year filers, and fiscal filers with a tax year ending
in 2014. Read the General Information first. It is recommended
that taxpayers and tax preparers also briefly review the
instructions for all forms.

File an MBT Annual Return for Financial Institutions (Form
4590) if the taxpayer is any of the following and holds a
certificated credit:

The franchise tax is imposed upon the tax base of the financial
institution after allocation or apportionment to Michigan at the
rate of 0.235 percent. There is no filing threshold for financial
taxpayers.

•	 A bank holding company, a national bank, a state chartered
bank, an office of thrift supervision chartered bank or thrift
institution, or a savings and loan holding company other
than a diversified savings and loan holding company as
defined in 12 United States Code (USC) 1467a(a)(1)(F) or a
federally chartered Farm Credit System institution.
•	 Any person, other than an insurance company subject to
the tax imposed under Chapter 2A of the MBT Act, who is
directly or indirectly owned by an entity described above
and is a member of the Unitary Business Group (UBG). (See
the definition of UBG in the “UBGs and Combined Filing”
section of this General Information.) This generally refers to
all non-insurance taxpayers that are owned by and unitary
with financial institutions.
•	 A UBG consisting of entities described above.
What is a Certificated Credit
Certificated credits consist of MBT credits that, under MCL
208.1107, are allowed to be applied against the calculated CIT
liability, as provided under MCL 208.1500(4).  The certificated
credits are either nonrefundable or refundable credits.   Below
is the list of all certificated credits potentially available to
financial institutions, and the respective form used for their
calculation.

Overview of MBT for Financial Institutions

In addition, there is an annual surcharge imposed at the rate of
23.4 percent.
NOTE: Trust-only banks do not pay a surcharge.
Nonrefundable and refundable credits are available for
financial institutions to help reduce the initial MBT liability.
This includes a limited allowance for Single Business Tax
(SBT) credit carryforwards.
These forms are available online at www.michigan.gov/taxes.

Required CIT Comparison
If choosing to file MBT to claim certain certificated   credits,
taxpayers are required to calculate MBT liability as the higher
of MBT liability or hypothetical CIT liability.  A taxpayer must
pay the higher of the two or take the lesser refund.

Nonrefundable Certificated Credits:
•	 Renaissance Zone Credit (Forms 4595 and 4573)
•	 Historic Preservation Credit (Forms 4573 and 4584)
•	 Brownfield Redevelopment Credit (Forms 4584 and  4573)
•	 Film Infrastructure Credit (Form 4573)
•	 MEGA Poly-Silicon Energy Cost Credit and Miscellaneous
MEGA Battery Credits (Forms 4584 and 4573).

A taxpayer calculates the franchise tax and surcharge of the
MBT and applies all credits, including certificated credits,
deductions, and exemptions available under the MBT.   Then,
as if they were subject to the CIT, taxpayers calculate the
franchise tax under the CIT and apply deductions available
under the CIT. The hypothetical CIT liability is then reduced
(not below to zero) by the amount of certificated nonrefundable
credit used to offset the MBT liability. The hypothetical CIT
liability offset by certificated nonrefundable MBT credits is
further reduced by the total amount of certificated refundable
credits claimed under the MBT liability calculation, resulting
in the taxpayers’ final hypothetical CIT liability. Taxpayers’
final MBT liability consists of the higher of the calculated
MBT and hypothetical CIT liabilities. If both MBT and
hypothetical CIT liabilities result in tax refunds (negative
liability), taxpayers are entitled to the lower refund amount.”

Refundable Certificated Credits:
•	 Historic Preservation Credit (Form 4573)
•	 Brownfield Redevelopment Credit (Forms 4584 and  4573)
•	 MEGA Employment Tax Credit (Form 4574)

Specific forms are provided to perform the MBT to CIT
comparison and determine the tax liability or refund. The
Michigan Schedule of Corporate Income Tax Liability for
a Michigan Business Tax Filer (Form 4946) is used for the
standard taxpayer comparison. The Michigan Schedule of

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Corporate Income Tax Liability for a Michigan Business Tax
Insurance Filer (Form 4974) is used for the insurance company’s
comparison. The Michigan Schedule of Corporate Income Tax
Liability for a Michigan Business Tax Financial Filer (Form
4975) is used for the financial institution’s comparison.  

Amending Estimates
If, after making payments, the estimated tax is substantially
different than originally estimated, recompute the tax and
adjust the payment in the next quarter.

Filing MBT/CIT Quarterly Tax Estimates for 2019

Electronic Filing of MBT Returns

If estimated liability for the year is reasonably expected to
exceed $800, a taxpayer must file estimated returns. A taxpayer
may remit quarterly estimated payments by check with a
Corporate Income Tax Quarterly Return (Form 4913) or may
remit monthly or quarterly estimated payments electronically
by Electronic Funds Transfer (EFT). When payments are made
by EFT, Form 4913 is not required.

Michigan has an enforced CIT e-file mandate. Software
developers producing CIT tax preparation software and
computer-generated forms must support e-file for all eligible
Michigan forms that are included in their software package. All
eligible CIT returns prepared using tax preparation software or
computer-generated forms must be e-filed.

Estimated returns and payments for calendar year taxpayers
are due to Treasury by April 15, July 15, October 15, and
January 15 of the following year. Fiscal year taxpayers should
make returns and payments by the appropriate due date which
is fifteen days after the end of each fiscal quarter. The sum of
estimated payments for each quarter must always reasonably
approximate the liability for the quarter.
NOTE: Your debit transaction will be ineligible for EFT
if the bank account used for the electronic debit is funded or
otherwise associated with a foreign account to the extent that
the payment transaction would qualify as an International ACH
Transaction (IAT) under NACHA Rules. Contact your financial
institution for questions about the status of your account.
Contact the Michigan Department of Treasury’s (Treasury)
EFT Unit at 517-636-6925 for alternate payment methods.
The estimated payment made with each quarterly return must
be computed on the actual CIT for the quarter, or 25 percent of
the estimated total liability if paying a CIT liability.
To avoid interest and penalty charges, estimated payments must
equal at least 85 percent of the total liability for the tax year
and the amount of each estimated payment must reasonably
approximate the tax liability for that quarter. If the prior year’s
tax is $20,000 or less, estimated tax may be based on the prior
year’s total tax liability paid in four equal installments. (“Four
equal installments” describes the minimum pace of payments
that will satisfy this safe harbor.) If the prior year’s tax liability
was reported for a period less than 12 months, this amount
must be annualized for purposes of both the $20,000 ceiling
and calculating the quarterly payments due under this method.
Payments at a more accelerated pace also will qualify. If the
year’s tax liability is $800 or less, estimates are not required.
NOTE: For those continuing to file MBT, reliance on the
tax liability of the prior year as a means to avoid interest and
penalty charges is only allowed if you had business activity in
Michigan in that prior year. A return must be filed to establish
the tax liability for that prior year, even if gross receipts in the
prior year were less than $350,000. In addition, if your business
was not in existence in the preceding year, no safe harbor
exists. In such a case, estimates must be based on the MBT
liability for the current year. For those filing CIT, there is no
safe harbor in this first year of CIT filing. The estimates must
equal at least 85 percent of the total liability as stated above.

Treasury will be enforcing the CIT e-file mandate. The
enforcement includes not processing computer-generated paper
returns that are eligible to be e-filed. A notice will be mailed to
the taxpayer, indicating that the taxpayer’s return was not filed
in the proper form and content and must be e-filed. Payment
received with a paper return will be processed and credited to
the taxpayer’s account even when the return is not processed.
Treasury will continue to accept certain Portable Document
Format (PDF) attachments with CIT e-filed returns. A current
list of defined attachments is available in the CIT “Michigan
Tax Preparer Handbook for  Electronic Filing Programs,” which
is available on the Treasury Web site at www.MIfastfile.org
by clicking on “Tax Preparer,” then “Corporate Income Tax
Handbook” for the applicable tax year. Follow your software
instructions for submitting attachments with an e-filed return.
If the MBT return includes supporting documentation or
attachments that are not on the predefined list of attachments,
the return can still be e-filed. Follow your software instructions
for including additional attachments. The tax preparer or
taxpayer should retain file copies of all documentation or
attachments.
For more information and program updates, including
exclusions from e-file, visit the e-file Web site at
www.MIfastfile.org.
The taxpayer may be required to e-file its federal return. Visit
the Internal Revenue Service (IRS) Web site at www.irs.gov
for more information on federal e-file requirements and the IRS
Federal/State Modernized e-File (MeF) program.

Complete Federal Tax Forms First
Before preparing MBT returns, complete all federal tax forms.
These forms may include:
•	 Fiduciaries — U.S. Form 1041, 1065, and related Schedules
C, C-EZ, D, E, K, 4797, and 8825.
•	 Corporations — U.S. Form 1120, 1120-S, and Schedules D,
K, 851, 940, 4562, 4797, and 8825.
•	 Limited Liability Companies (LLCs) — federal forms listed
above, depending on how federal returns have been filed.
Reference these federal forms to complete Form 4590.
Copies of certain pages from these federal forms must also
be attached to the annual return filed. See the instructions for
Form 4590 for further details.

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Completing Michigan Forms
Treasury captures the information from paper MBT returns
using an Intelligent Character Recognition process. If
completing a paper return, avoid unnecessary delays caused
by manual processing by following the guidelines below so the
return is processed quickly and accurately.
•	 Use black or blue ink. Do not use pencil, red ink, or felt tip
pens. Do not highlight information.
•	 Print using capital letters (UPPER CASE). Capital letters
are easier to recognize.
•	 Print numbers like this: 012345678. Do not put a slash
through the zero ( ) or seven ( 7).
•	 Fill check boxes with an [X]. Do not use a check mark [ a].
•	 Leave lines/boxes blank if they do not apply or if the
amount is zero, unless otherwise instructed.
•	 Do not enter data in boxes filled with Xs.
•	 Do not write extra numbers, symbols, or notes on the
return, such as cents, dashes, decimal points (excluding
percentages), or dollar signs, unless otherwise instructed.
Enclose any explanations on a separate sheet unless
instructed to write explanations on the return.
•	 Date format, unless otherwise specified, should be in the
following format: MM-DD-YYYY. Use dashes (-) rather
than slashes (/).
•	 Enter phone numbers using dashes (e.g., 517-555-5555); do
not use parentheses.
•	 Stay within the lines when entering information in boxes.
•	 Report losses and negative amounts with a negative sign in
front of the number (do not use parentheses). For example, a
loss in the amount of $22,459 should be reported as -22,459.
•	 Percentages should be carried out four digits to the
right of the decimal point. Do not round percentages. For
example, 24.154266 percent becomes 24.1542 percent.
When converting a percentage to a decimal number, carry
numbers out six digits to the right of the decimal point. For
example, 24.154266 percent becomes 0.241542.
•	 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.

Suggested Order of Analysis and Preparation of
an MBT Annual Return
First, determine whether the taxpayer has  a certificated credit.  
If the financial institution taxpayer does not have a certificated
credit, it is subject to the CIT. Additionally, for all certificated
credits other than qualifying Historic Preservation or Brownfield
credits, the taxpayer must have made the election for its first tax
year ending after December 31, 2011, in order to continue under
the MBT. For a taxpayer using Form 4590, first complete lines
1 through 26. At that point, if any nonrefundable credits will
be claimed, begin the MBT Nonrefundable Credits Summary
(Form 4568), which serves several important functions:
•	 Acts as a checklist of nonrefundable credits
•	 Identifies the order in which nonrefundable credits must be
claimed

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•	 Identifies the form on which each nonrefundable credit is
calculated
•	 Tracks tax liability as it is reduced by each credit in proper
order
•	 Identifies (where applicable) the point at which tax liability
reaches zero and no further nonrefundable credits may be
claimed in the current filing period.	
Complete Form 4568 from top to bottom. For each credit the
taxpayer qualifies for, calculate the credit as identified on the
appropriate form and bring the result back to the appropriate
line on Form 4568.
After total nonrefundable credits are determined on Form
4568, line 40, carry the figure to Form 4590, line 27. The lines
following are straightforward, but take care to consider any
available refundable credits on Form 4590, Part 2.

Further General Guidance
For purposes of MBT, person means an individual, firm, bank,
financial institution, insurance company, limited partnership,
limited liability partnership, copartnership, partnership, joint
venture, association, corporation, S corporation, LLC, receiver,
estate, trust, or any other group or combination of groups
acting as a unit.
A taxpayer includes a single person or a UBG liable for tax,
interest, or penalty. A UBG must file a combined MBT return
(addressed in the “UBGs and Combined Filing” section of this
General Information).
Limited Liability Company. An LLC is classified for MBT
purposes according to its federal tax classification. The
following terms, whenever used in MBT forms, instructions,
and statute, include LLCs as indicated:
S Corporation includes an LLC federally taxed as an S
Corporation, and a member of this LLC is a shareholder.
C Corporation includes an LLC federally taxed as a C
Corporation, and a member of this LLC is a shareholder. A
member or other person performing duties similar to those of
an officer in a true corporation is an officer in this LLC.
NOTE: In this booklet, the term “corporation,” used without a
C or S, generally refers to both types.
A person that is a disregarded entity for federal income
tax purposes under the internal revenue code must file as
a disregarded entity for MBT purposes. 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.
Fiduciaries filing for Trusts engaged in business activity must
file an MBT return and report the total business activity.

UBGs and Combined Filing
NOTE: UBGs are addressed below, in general. In the
instructions for each form, “Special Instructions for Unitary
Business Groups” are located directly before “Line-by-Line
Instructions.” The areas in the “Line-by-Line Instructions” that

apply only to UBGs are labeled “UBGs.” Additional direction
is found in the “Supplemental Instructions for Standard
Members in UBGs.”

Determining the Existence and Membership
of a UBG
Unitary Business Group means a group of United States
persons, other than a foreign operating entity, that satisfies the
control test and relationship test.
United States person is defined in Internal Revenue Code (IRC)
§ 7701(a)(30). A foreign operating entity is defined by statute in
Michigan Compiled Laws (MCL) 208.1109(5).
Control Test. The control test is satisfied when one person
owns or controls, directly or indirectly, more than 50 percent
of the ownership interest with voting or comparable rights of
the other person or persons. A person owns or controls more
than 50 percent of the ownership interest with voting rights
or ownership interest that confer comparable rights to voting
rights of another person if that person owns or controls:
More than 50 percent of the total combined voting power of all
ownership interests with voting (or comparable) rights, or
More than 50 percent of the total value of all ownership
interests with voting (or comparable) rights.
Relationship Tests. The definition of a UBG requires, in
addition to satisfying the control test, that the group of persons
have business activities or operations that either:

For more information on the control and relationship tests for
UBGs, see Revenue Administrative Bulletin (RAB) 2010-1,
MBT—Unitary Business Group Control Test, and RAB 20102, MBT—Unitary Business Group Relationship Tests, on
Treasury’s Web site at www.michigan.gov/treasury. (Click on
“Reports and Legal Resources.”)

Filing the Correct Form
A different primary return and instruction booklet are required
for standard taxpayers (Form 4567) and insurance companies
(Form 4588).

Filing if Tax Year Is Less Than 12 Months
Generally, annual returns must be filed for the same period as
federal income tax returns.
Tax year means the calendar year, or the fiscal year ending
during the calendar year, upon the basis of which the tax base of
a taxpayer is computed. If a return is made for a fractional part
of a year, tax year means the period for which the return is made.
A taxpayer that has a 52- or 53-week tax year beginning not
more than seven days before December 31 of any year is
considered to have a tax year beginning after December of that
tax year.
Example 1: A taxpayer with a federal tax year beginning on
Monday, December 26, 2022, will be treated as follows:

1) Result in a flow of value between or among persons in the
group, or

•	 2022 tax year end of December 31, 2022.
•	 Due date of April 30, 2023.
•	 2023 tax year beginning January 1, 2023.

2) Are integrated with, dependent upon, or contribute to each
other.

Example 2: A taxpayer with a federal tax year ending on
Friday, January 6, 2023, will be treated as follows:

A taxpayer need only meet one of the two alternative tests to
satisfy the relationship test.

•	 2022 tax year end of December 31, 2022.
•	 Due date of April 30, 2023.
•	 2023 tax year beginning on January 1, 2023.

1) Flow of value is established when members of the group
demonstrate one or more of functional integration, centralized
management, and economies of scale. Examples of functional
integration include common programs or systems and shared
information or property. Examples of centralized management
include common management or directors, shared staff
functions, and business decisions made for the UBG rather
than separately by each member. Examples of economies
of scale include centralized business functions and pooled
benefits or insurance. Groups that commonly exhibit a flow of
value include vertically or horizontally integrated businesses,
conglomerates, parent companies with their wholly owned
subsidiaries, and entities in the same general line of business.
Flow of value must be more than the mere flow of funds arising
out of passive investment.
2) The alternate “contribution/dependency” relationship test
asks whether business activities are integrated with, dependent
upon, or contributed to each other. Businesses are integrated
with, are dependent upon, or contribute to each other under
many of the same circumstances that establish flow of value.
However, this alternate relationship test is also commonly
satisfied when one entity finances the operations of another or
when there exist intercompany transactions, including financing.

Example 3: A 52- or 53-week year closing near the end of
January is common in the retail industry. Such a taxpayer will
be treated as follows:
•	 2022-23 fiscal year end will be January 31, 2023.
•	 Due date will be May 31, 2023.
•	 2023-24 fiscal year will begin on February 1, 2023.
Annualizing
If the filing period is less than 12 months, annualize the prior
year’s tax liability to determine whether estimates may be
based on that liability. If the prior year’s annualized liability
is $20,000 or less, estimates may be based on the annualized
amount if paid in four equal, timely, installments.
If annualization is required, multiply the prior year’s tax
liability by 12 and divide the result by the number of months
the business operated. Generally, a business is considered in
business for a month if the business operated for more than half
the days of that month. A business whose entire tax year is 15
days or less, however, is considered in business for one month.
EXAMPLE: A fiscal year taxpayer with a tax year ending in

5

June files a six-month return ending June 2010 reporting a tax
liability of $9,000. Estimates for the tax year ending June 2011
may be based on the annualized liability of $18,000. Estimates
must be paid in four equal, timely installments of $4,500.
Fiduciaries: A business registered as a Fiduciary that is in
business less than 12 months is not required to annualize.

Due Dates of Annual Returns
Annual returns are due on or before the last day of the fourth
month after the end of the tax year.  For example, a return for
calendar year 2024 is due April 30, 2025. A return for a fiscal
year ending June 30, 2025, is due October 31, 2025.  
Additional Filing Time
If additional time is needed to file an annual tax return, request
a Michigan extension by filing an Application for Extension of
Time to File Michigan Tax Returns (Form 4). Check the box for
MBT to extend the time to file an  MBT return.
UBG NOTE: Extension requests must be filed under the name
and account number of a UBG’s designated member to be a
valid request for extension.
Filing a federal extension request with the IRS does not
automatically grant an MBT extension. The IRS does not
notify state governments of extensions. A request for a
Michigan extension must be received and approved to avoid
penalty on the tax due.
Extension applications must be postmarked on or before the
due date of an annual return.
Although Treasury may grant extensions for filing MBT
returns, it will not extend the time to pay. Extension
applications received without proper payment will not be
processed. Penalty and interest will accrue on the unpaid tax
from the original due date of the return.
Properly filed and paid estimates along with the amount included
on the extension application will be accepted as payment on a
tentative return, and an extension may be granted. It is important
that the application is completed correctly.
Once a properly prepared and timely filed application along
with appropriate estimated tax payments is received, Treasury
will grant an extension of eight months to file the tax return.
Any estimated tax that may be due with the request should
be paid in the same manner as estimated payments were paid
during the year.
A written response will be sent to the legal address on file
when a valid extension application is received.
If an MBT extension is filed on time but the total payments
received by the original due date are less than 90 percent of the
tax liability, a 10 percent negligence penalty may apply.
IMPORTANT: If no tax is owed, there is no need to file an
extension with Michigan by the due date of the return to
avoid penalty. However, without an approved extension, it is
necessary to file an annual return as soon as the information is
available to do so. An extension of time to file will also extend
the statute of limitations.

6

Amending a Return
A taxpayer may not amend to revoke the election to remain
taxable under the MBT.   Once the taxpayer makes a valid
election to claim a certificated credit, the taxpayer must
remain in the MBT until the certificated credit and any
carryforward of that credit are exhausted. Most certificated
credits must be claimed for the taxpayer’s first tax year ending
after December 31, 2011.
To amend a current or prior year annual return, complete the
Form 4590 that is applicable for that year and check the box
in the upper-right corner of the return, and attach a separate
sheet explaining the reason for the changes. Include all
schedules filed with the original return, even if not amending
that schedule. Enter the figures on the amended return as they
should be. Do not include a copy of the original return with
your amended return.
Current and past year forms are available on Treasury’s Web
site at www.michigan.gov/treasuryforms.
To amend a return to claim a refund, file within four years of
the due date of the original return (including valid extensions).
Most certificated credits must be claimed for the taxpayer’s
first tax year ending after December 31, 2011. Interest will be
paid beginning 45 days after the claim is filed or the due date,
whichever is later.
If amending a return to report a deficiency, penalty and interest
may apply from the due date of the original return.
If any changes are made to a federal income tax return that
affect an MBT tax base, filing an amended return is required.
To avoid penalty, file the amended return within 120 days after
the final determination by the IRS.

Computing Penalty and Interest
Annual and estimated returns filed late or without sufficient
payment of the tax due are subject to a penalty of 5 percent of
the tax due, for the first two months. Penalty increases by an
additional 5 percent per month, or fraction thereof, after the
second month, to a maximum of 25 percent.
Compute penalty and interest for underpaid estimates using
the MBT Penalty and Interest Computation for Underpaid
Estimated Tax (Form 4582). If a taxpayer prefers not to file this
form, Treasury will compute the penalty and interest and send
a bill.
The following chart shows the interest rate that applies to each
filing period. A new interest rate is set at 1 percent above the
adjusted prime rate for each six-month period.
Beginning Date

Rate

Daily Rate

January 1, 2024

9.30%

0.0002541

July 1, 2024

9.50%

0.0002596

January 1, 2025

9.47%

0.0002595

For a complete list of interest rates, see the Revenue
Administrative Bulletins on Treasury’s Web site at
www.michigan.gov/treasury/.

Signing the Return

Mailing Addresses

All returns must be signed and dated by the taxpayer or the
taxpayer’s authorized agent. This may be the owner, partner,
corporate officer, or association member. The corporate
officer may be the president, vice president, treasurer, assistant
treasurer, chief accounting officer, or any other corporate
officer (such as tax officer) authorized to sign the corporation’s
tax return.

Mail the annual return and all necessary schedules to:

If someone other than the above prepared the return, the preparer
must give his or her business address and telephone number.
Print the name of the authorized signer and preparer in the
appropriate area on the return.
Assemble the returns and attachments (in sequence order)
and staple in the upper-left corner. (Do not staple a check to
the return.) In an e-filed return, the preparation software will
assemble the forms and PDF attachments in the proper order
automatically.
IMPORTANT REMINDER: Failure to include all the
required forms and attachments will delay processing and may
result in reduced or denied refund or credit forward or a bill for
tax due.
SIGNING AN E-FILED RETURN: As with any tax return
submitted to Treasury on paper, an electronic tax return must
be signed by an authorized tax return signer, the Electronic
Return Originator (ERO), if applicable, and the paid tax
preparer, if applicable. NOTE: If the return meets one of the
exceptions to the e-file mandate and is being filed on paper,
it must be manually signed and dated by the taxpayer or the
taxpayer’s authorized agent.
The MBT Fed/State e-file signature process is as follows:
Fed/State Returns: Michigan will accept the federal signature
method. Michigan does not require any additional signature
documentation.

With payment:
Michigan Department of Treasury
PO Box 30113
Lansing MI 48909
Without payment:
Michigan Department of Treasury
PO Box 30783
Lansing MI 48909
Mail an extension application (Form 4) to:
Michigan Department of Treasury
PO Box 30774
Lansing MI 48909-8274
Mail MBT/CIT quarterly estimate payments (Form 4913) to:
Michigan Department of Treasury
PO Box 30774
Lansing MI 48909-8274
Courier delivery service mail should be sent to:
Michigan Department of Treasury
7285 Parsons Dr.
Dimondale, MI 48821
Make all checks payable to “State of Michigan.” Print
taxpayer’s FEIN or TR Number, the tax year, and “MBT” on
the front of the check. Do not staple the check to the return.

Correspondence
An address change or business discontinuance can be reported online
by using Michigan Treasury Online (MTO), Business Tax Services.
See www.michigan.gov/mtobusiness for information. In the
alternative, Notice of Change or Discontinuance (Form 163), can be
found online at www.michigan.gov/treasuryforms.

State Stand Alone Returns: State Stand Alone returns must
be signed using Form MI-8879 (also called the Michigan
e-file Authorization for Business Taxes MI-8879, Form
4763). Returns are signed by entering the taxpayer PIN in the
software after reading the perjury statement displayed in the
software. The taxpayer PIN will be selected by the taxpayer, or
the taxpayer may authorize his or her tax preparer to select the
taxpayer PIN.

Mail correspondence to:
Business Tax Division, MBT Unit
Michigan Department of Treasury
PO Box 30059
Lansing MI 48909

Form MI-8879 will be printed and contain the taxpayer PIN.
The tax preparer will retain Form MI-8879 in his or her
records as part of the taxpayer’s printed return. MBT State
Stand Alone e-filings submitted without a taxpayer PIN
will be rejected by Treasury. Do not mail Form MI-8879 to
Treasury and do not include Form MI-8879 as an attachment
with the e-file return.

Current and past year forms are available on Treasury’s Web
site at www.michigan.gov/treasuryforms.

To Request Forms
Internet

TTY
Assistance is available using TTY through the Michigan Relay
Service by calling 711.

7

8

Michigan Department of Treasury
4590 (Rev. 04-24), Page 1 of 2

2024 MICHIGAN Business Tax Annual Return
for Financial Institutions
Issued under authority of Public Act 36 of 2007.

Check if this is an
amended return.
See instructions.
(MM-DD-YYYY)

1. Return is for calendar year 2024 or for tax year beginning:

and ending:

(MM-DD-YYYY)

2. Taxpayer Name (print or type)

7. Federal Employer Identification Number (FEIN) or TR Number

Doing Business As (DBA)

8. Organization Type

Street Address
City

State

ZIP/Postal Code

4. Business Start Date in Michigan

5. NAICS (North American Industry Classification System) Code

6. If Discontinued, Effective Date

10. Apportionment Calculation:

C Corporation /
LLC C Corporation

Country Code

3. Principal Business Activity

S Corporation /
LLC S Corporation

Fiduciary

Check if
new address.
(See instructions)

8a.

Check if taxpayer (or any UBG member) has authority to
exercise trust powers only.

9.

Check if Filing Michigan Unitary Business Group Return.
(Include Form 4752.)

00
00
%

a. Michigan Gross Business (if no Michigan gross business, enter zero)...10a.
b. Total Gross Business....................................................................10b.
c. Apportionment Percentage. Divide line 10a by line 10b..............10c.

PART 1: FRANCHISE TAX
Lines 11-14: If less than zero, enter zero.
11. Equity Capital.....................
11.
12. Goodwill..............................
12.
13.

Average daily book value
of Michigan obligations.......

13.

14.

Average daily book value
of U.S. obligations..............

14.

15.

Subtotal. Add lines 12
through 14..........................

15.

16.

Net Capital. Subtract line
15 from line 11....................

16.

17.

a. Authorized insurance co.
subsidiary: Enter actual
capital fund amount........ 17a.

A
2020

B
2021

C
2022

D
2023

E
2024

b. Minimum regulatory
amount required............. 17b.
c. Multiply line 17b by
125% (1.25).................... 17c.
d. Subtract line 17c from
17a. If less than zero,
enter zero....................... 17d.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.

+

Add lines 16 and 17d..........
18.
Add line 18, columns A through E. If less than zero, enter zero, skip lines 20-25, and enter zero on line 26.........
Net Capital for Current Taxable Year. Divide line 19 by number of tax years reported above.................................
Apportioned Tax Base. Multiply line 20 by percentage on line 10c.........................................................................
Multiply line 21 by 0.235% (0.00235)......................................................................................................................
There is no amount to be entered on the line. Skip to line 26.................................................................................
There is no amount to be entered on the line. Skip to line 26.................................................................................
There is no amount to be entered on the line. Skip to line 26.................................................................................
Total Liability Before All Credits. Enter amount from line 22....................................................................................
Nonrefundable credits from Form 4568, line 40......................................................................................................
Total Tax After Nonrefundable Credits. Subtract line 27 from line 26. If less than zero, enter zero....................

0000 2024 87 01 27 8

19.
20.
21.
22.
23.
24.
25.
26.
27.
28.

00
00
00
00
X X X X X X X X 00
X X X X X X X X 00
X X X X X X X X 00
00
00
00

Continue and sign on Page 2.

2024 Form 4590, Page 2 of 2

29.
30.
31.
32.

FEIN or TR Number

Recapture of Certain Business Tax Credits from Form 4587, line 13....................................................................
Total MBT Tax Liability. Add lines 28 and 29.....................................................................................................
Corporate Income Tax adjustment from Form 4975, line 17.................................................................................
Total Tax Liability. Add lines 30 and 31...............................................................................................................

29.
30.
31.
32.

00
00
00
00

38.

00

PART 2: PAYMENTS, REFUNDABLE CREDITS AND TAX DUE
33.
34.
35.
36.
37.
38.

Overpayment credited from prior MBT return................................................... 33.
00
Estimated tax payments................................................................................... 34.
00
There is no amount to be entered on this line. Skip to line 36......................... 35. X X X X X X X X 00
Tax paid with request for extension.................................................................. 36.
00
Refundable credits from Form 4574, line 23.................................................... 37.
00
Total Payments. Add lines 33 through 37. (If not amending, then skip to line 40)................................................

00
AMENDED a. Payment made with original and/or prior amended returns... 39a.
39. RETURN b. Overpayment from original and/or prior amended returns.... 39b.
00
ONLY
c. Add lines 38 and 39a and subtract line 39b from the sum.... .................................................... 39c.
40. TAX DUE. Subtract line 38 (or line 39c, if amending) from line 32. If less than zero, leave blank........................
40.
41. Underpaid estimate penalty and interest from Form 4582, line 38.........................................................................
41.
42.
43.

Annual return penalty (a)
% = (b)
00 plus interest of (c)
00 . Total...... 42d.
PAYMENT DUE. If line 40 is blank, go to line 44. Otherwise, add lines 40, 41 and 42d......................................
43.

00
00
00
00
00

PART 3: REFUND OR CREDIT FORWARD
44.
45.
46.

Overpayment. Subtract lines 32, 41 and 42d from line 38 (or line 39c, if amending). If less than zero, leave
blank (see instructions)..........................................................................................................................................
CREDIT FORWARD. Amount on line 44 to be credited forward and used as an estimate for next MBT tax year.....
REFUND. Amount on line 44 to be refunded.........................................................................................................

Taxpayer Certification.

I declare under penalty of perjury that the information in
this return and attachments is true and complete to the best of my knowledge.
By checking this box, I authorize Treasury to discuss my return with my preparer.
Authorized Signature for Tax Matters

Authorized Signer’s Name (print or type)
Title

44.
45.
46.

00
00
00

Preparer Certification.

I declare under penalty of perjury that this
return is based on all information of which I have any knowledge.
Preparer’s PTIN, FEIN or SSN
Preparer’s Business Name (print or type)

Date

Preparer’s Business Address and Telephone Number (print or type)

Telephone Number

Return is due April 30 or on or before the last day of the 4th month after the close of the tax year.
WITHOUT PAYMENT - Mail return to:
Michigan Department of Treasury
PO Box 30783
Lansing MI 48909

+

0000 2024 87 02 27 6

WITH PAYMENT — Pay amount on line 43
and mail check and return to:
Michigan Department of Treasury
PO Box 30113
Lansing MI 48909

Make check payable to “State of
Michigan.” Print taxpayer’s FEIN or
TR Number, the tax year, and “MBT” on
the front of the check. Do not staple the
check to the return.

Instructions for Form 4590
Michigan Business Tax (MBT) Annual Return for Financial Institutions
Purpose
To calculate a tax liability and claim credits for a financial
institution for MBT.
NOTE: 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.  If a taxpayer files an
MBT return and claims a certificated credit, the taxpayer makes
the election to file and pay under the MBT until the certificated
credit and any carryforward of that credit are exhausted.

General Instructions
MBT Liability: Beginning January 1, 2012, a taxpayer
calculates MBT liability as the greater of MBT liability
after all credits, deductions, and exemptions or hypothetical
Corporate Income Tax (CIT) liability minus deductions and
credits available under that act and minus certificated credits
allowed under the MBT.   This calculation of liability requires
a taxpayer to calculate net equity tax base and apply available
MBT credits, including certificated credits, deductions, and
exemptions available under the MBT.   Then, the taxpayer
will calculate the CIT comparison on Schedule of Corporate
Income Tax Liability for a Financial Filer (Form 4975).   A
taxpayer is permitted to reduce hypothetical CIT liability by
all deductions and credits which would be allowed under that
tax as well as the amount of certificated credit allowed under
the MBT. The amount of certificated credit allowed under the
MBT is the amount of nonrefundable credit needed to offset
MBT liability or the entire amount of a refundable credit.
If the taxpayer’s hypothetical CIT liability would be higher
than its MBT liability, the taxpayer will add the difference to
MBT liability on line 31 of this form (4590). This is the CIT
adjustment. If the result of both steps of the calculation is a
negative number, the taxpayer will receive a refund of the lower
negative; but a nonrefundable credit cannot be used to reduce
liability below zero. Remaining nonrefundable certificated credit
may be carried forward to succeeding tax years.

Special Instructions for Unitary Business Groups
A Unitary Business Group (UBG) is a group of United States
persons, other than a foreign operating entity, that satisfies the
following criteria:
•	 One of the persons owns or controls, directly or indirectly,
more than 50 percent of the ownership interest with voting
rights (or rights comparable to voting rights) of the other
United States persons; AND
•	 The UBG has operations which result in a flow of value
between persons in the UBG or has operations that are
integrated with, are dependent upon, or contribute to each
other. Flow of value is determined by reviewing the totality of
facts and circumstances of business activities and operations.
All financial institution members of a UBG must file a
combined Form 4590 for the group with a Designated Member
(DM) who must be the controlling member of the group, unless

the controlling member does not have nexus with Michigan. If
that is the case, the controlling member may appoint a group
member with nexus to serve as the DM.
NOTE: The MBT Unitary Business Group Combined Filing
Schedule for Financial Institutions (Form 4752) must be
completed before completing Form 4590.
For more information on UBGs, see the instructions for Form
4752, available online at the Department of Treasury (Treasury)
Web site at www.michigan.gov/taxes.
For more information on the control and relationship tests for
UBGs, see Revenue Administrative Bulletin (RAB) 2010-1
Michigan Business Tax-Unitary Business Group Control Test
and RAB 2010-2 Michigan Business Tax-Unitary Business
Group Relationship Tests on the Treasury Web site.
NOTE: Under the foregoing definition, a UBG may include
financial institutions, insurance companies, and standard
taxpayers. A group containing a mixture of these three
taxpayer types may be required to file two or more returns to
properly report the activities of the different taxpayer types
within the group.
Under Michigan Compiled Law (MCL) 208.1261(f), financial
institution means any of the following:
i.	 A bank holding company, a national bank, a state chartered
bank, an office of thrift supervision chartered bank or thrift
institution, or a savings and loan holding company other than a
diversified savings and loan holding company as defined in 12
United Stated Code (USC) 1467a(a)(F) or a federally chartered
Farm Credit System institution.
ii.	 Any entity, other than an entity subject to the tax imposed
under Chapter 2A (insurance company), who is directly or
indirectly owned by an entity described in (i) and is a member
of the UBG.
iii.	 A UBG of entities described in (i) or (ii), or both.
NOTE: Because the definition of financial institution for MBT
purposes includes any entity (except an insurance company) that
is owned by a bank or other entity (as described above) and is
a member of a UBG with its parent, this may cause an entity
that is not commonly thought of as a financial institution to be
defined as one for return filing purposes. A UBG of financial
institutions must file a combined return on this Form 4590 that
includes each member of the group that is a financial institution.
Taxpayer Certification
A return filed by a UBG must be signed by an individual
authorized to sign on behalf of the DM. Provide the telephone
number of that individual at the DM’s office.

Line-by-Line Instructions
Lines not listed are explained on the form.
Dates must be entered in MM-DD-YYYY format.
For periods less than 12 months, see the “General Information
for Financial Institutions” in the MBT Forms and Instructions
for Financial Institutions (Form 4599).

11

UBGs: Complete Form 4752 before beginning Form 4590.
Amended Returns: To amend a current or prior year annual
return, complete the Form 4590 that is applicable for that year,
check the box in the upper-right corner of the return, and attach
a separate sheet explaining the reason for the changes. Include an
amended federal return or a signed and dated Internal Revenue
Service (IRS) audit document. Include all schedules filed with
the original return, even if not amending that schedule. Enter the
figures on the amended return as they should be. Do not include
a copy of the originally filed return with the amended return.
A taxpayer may not amend to revoke the election to remain
taxable under the MBT. Once the taxpayer makes a valid election
to claim a certificated credit, the taxpayer must remain in the
MBT until the credit and any carryforward of that credit are
exhausted.
Line  1:	Unless a calendar year, enter the beginning and ending
dates (MM-DD-YYYY) that correspond to the taxable period
as reported to the IRS.
Tax year means the calendar year, or the fiscal year ending
during the calendar year, upon the basis of which the tax base
of a taxpayer is computed. If a return is made for a fractional
part of a year, tax year means the period for which the return
covers. Generally, a taxpayer’s tax year is for the same period
as is covered by its federal income tax return.
Fiscal Year Filers: See “Supplemental Instructions for Fiscal
MBT Filers — Financial Institutions” in Form 4599.
Line  2: Enter the complete address and, if other than the
United States, enter the two-digit abbreviation for the country
code. See the list of country codes in Form 4599.

Line  6:	 Enter the date, if applicable, on which the taxpayer went
out of business. To file a discontinuance for Michigan taxes,
use Michigan Treasury Online (MTO). Visit www.michigan.
gov/mtobusiness for more information.subject to another tax
administered by Treasury, do not use this line. Also, do not use
this line if the taxpayer is a UBG and one member has stopped
doing business.
Line  7: Use the taxpayer’s Federal Employer Identification
Number (FEIN) or the Michigan Treasury (TR) assigned
number. Be sure to use the same account number on all forms.
If the taxpayer does not have an FEIN or TR number,
the taxpayer MUST register before filing this form.
Taxpayers are encouraged to register online at
www.michigan.gov/businesstaxes. The Web site provides
information on obtaining an FEIN, which is required to submit
taxes through e-file. Taxpayers usually can obtain an FEIN from
the IRS within 48 hours. Taxpayers registering with the State
online usually receive an account number within seven days.
Returns received without a registered account number will not
be processed until such time as a number is provided.
UBGs: Enter the FEIN or TR Number for the DM of the
financial group.
Line  8: 	Check the box that describes the DM’s organization
type. A Trust or a Limited Liability Company (LLC) should
check the appropriate box based on its federal return.
NOTE: A person that is 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.

Any correspondence regarding the return filed and/or refund
will be sent to the address used here. Check the new address
box if the address used on this line has changed from the last
filing. The taxpayer’s primary address in the Department of
Treasury (Treasury) files, identified as the legal address and
used for all purposes other than refund and correspondence
on a specific MBT return, will not change until the customer
specifically makes the change on their Michigan Treasury
Online (MTO) account. Visit michigan.gov/mtobusiness for
more information.

Line  8a: If the taxpayer meets the definition of financial institution
and is filing this form, but is authorized to exercise only trust
powers, check this box. See line 23 for additional instructions.

Exception: If mail sent to the legal address has been returned
to Treasury by the United States Postal Service, Treasury will
update the taxpayers legal address with the address used on
this line in the most recent MBT return.

Lines  10a through 10c: A taxpayer may apportion on lines
10a through 10c only if its business activities are subject
to tax both within and outside of Michigan. A financial
institution is subject to tax in another state, as that term is
used here, only if:

UBGs: In the Name field, enter the name of the DM for the
financial institutions.
Line  3:	Enter a brief description of the principal types of
financial services in which the taxpayer is engaged.
Line  4: Enter the start date of first business activity in Michigan.
Line  5:	Enter the entity’s six-digit North American Industry
Classification System (NAICS) code. For a complete list of
six-digit NAICS codes, see the U.S. Census Bureau Web site
at www.census.gov/eos/www/naics/, or enter the same NAICS
code used when filing the entity’s U.S. Form 1120, Schedule K,
U.S. Form 1120S, or U.S. Form 1065.

12

UBG: If any member of a UBG is a financial institution that
is authorized to exercise only trust powers, the UBG should
check this box.
Line  9:	Check this box if filing a Michigan UBG return and
include Form 4752. For MBT, taxpayer means a person or a
UBG liable for tax, interest, or penalty.

•	 It is subject to a Business Privilege Tax, a Net Income Tax, a
Franchise Tax measured by net income, a Franchise Tax for
the privilege of doing business, or a corporate stock tax or
a tax of the type imposed under the MBT Act in that other
state; OR
•	 That other state has jurisdiction to subject the financial
institution to one or more of the taxes listed above regardless
of whether that state does or does not subject the financial
institution to such a tax.
Under MCL 208.1261(g), gross business means the sum of the

are in Michigan if the financial institution’s customer is
in Michigan. If the location of the financial institution’s
customer cannot be determined, both of the following apply:

following less transactions between those entities included in a UBG:
i.	 Fees, commissions, or other compensation for financial
services.
ii.	 Net gains, not less than zero, from the sale of loans and
other intangibles.
iii.	Net gains, not less than zero, from trading in stocks, bonds,
or other securities.
iv.	Interest charged to customers for carrying debit balances of
margin accounts.
v.	 Interest and dividends received.
vi.	Any other gross proceeds resulting from the operation as a
financial institution.
For a UBG that includes financial institutions, gross business
includes gross business in Michigan of every financial
institution included in that UBG without regard to whether the
financial institution has nexus in Michigan. Gross business
between financial institutions included in a UBG must be
eliminated in calculating the gross business factor.
Gross business is determined to be in Michigan under
extensive guidelines found at MCL 208.1269. These guidelines
are summarized as follows:
•	 Receipts from credit card receivables including interest and
fees or penalties in the nature of interest from credit card
receivables and receipts from fees charged to credit card
holders such as annual fees are in Michigan if the billing
address of the credit card holder is located in Michigan.
•	 Credit card issuer’s reimbursement fees are in Michigan
if the billing address of the credit card holder is located in
Michigan.
•	 Receipts from merchant discounts are in Michigan if the
commercial domicile of the merchant is in Michigan.
•	 Loan servicing fees are in Michigan under any of the
following circumstances:
○	 For a loan secured by real property, if the real property
for which the loan is secured is in Michigan.
○	 For a loan secured by real property, if the real property
for which the loan is secured is located both in
Michigan and in one or more other states and more than
50 percent of the fair market value of the real property
is located in Michigan.
○	 For a loan secured by real property, if more than 50
percent of the fair market value of the real property for
which the loan is secured is not located within any one
state but the borrower is located in Michigan.
○	 For a loan not secured by real property, the borrower is
located in Michigan.
•	 Receipts from services are in Michigan if the recipient of the
services receives all of the benefit of the services in Michigan.
If the recipient of the services receives some of the benefit
of the services in Michigan, the receipts are included in the
numerator of the apportionment factor in proportion to the
extent that the recipient receives benefit of the services in
Michigan.
•	 Receipts from investment assets and activities and trading
assets and activities, including interest and dividends,

•	

•	

•	
•	

•	
•	
•	

○	 Interest, dividends, and other income from investment
assets and activities and from trading assets and
activities, including, but not limited to, investment
securities; trading account assets; federal funds;
securities purchased and sold under agreements
to resell or repurchase; options; futures contracts;
forward contracts; notional principal contracts such
as swaps; equities; and foreign currency transactions
are in Michigan if the average value of the assets is
assigned to a regular place of business of the taxpayer
in Michigan. Interest from federal funds sold and
purchased and from securities purchased under resale
agreements and securities sold under repurchase
agreements are in Michigan if the average value of
the assets is assigned to a regular place of business of
the taxpayer in Michigan. The amount of receipts and
other income from investment assets and activities is
in Michigan if assets are assigned to a regular place of
business of the taxpayer in Michigan.
○	 The amount of receipts from trading assets and
activities, including, but not limited to, assets and
activities in the matched book, in the arbitrage book,
and foreign currency transactions, but excluding
amounts otherwise sourced in this section, are in
Michigan if the assets are assigned to a regular place of
business of the taxpayer in Michigan.
Interest charged to customers for carrying debit balances
on margin accounts without deduction of any costs incurred
in carrying the accounts is in Michigan if the customer is
located in Michigan.
Interest from loans secured by real property is in Michigan
if the property is located in Michigan, if the property is
located both within Michigan and one or more other states
and more than 50 percent of the fair market value of the real
property is located in Michigan, and if more than 50 percent
of the fair market value of the real property is not located
within any one state but the borrower is located in Michigan.
Interest from loans not secured by real property is in
Michigan if the borrower is located in Michigan.
Net gains from the sale of loans secured by real property
or mortgage service rights relating to real property are in
Michigan if the property is in Michigan, if the property is
located both within Michigan and one or more other states
and more than 50 percent of the fair market value of the real
property is located in Michigan, or if more than 50 percent
of the fair market value of the real property is not located in
any one state, but the borrower is located in Michigan.
Net gains from the sale of loans not secured by real property
or any other intangible assets are in Michigan if the
depositor or borrower is located in Michigan.
Receipts from the lease of real property are in Michigan if
the property is located in Michigan.
Receipts from the lease of tangible personal property are in
Michigan if the property is located in Michigan when it is
first placed in service by the lessee.

13

•	 Receipts from the lease of transportation tangible personal
property are in Michigan if the property is used in Michigan
or if the extent of use of the property in Michigan cannot
be determined but the property has its principal base of
operations in Michigan.
UBGs: Carry amount from Form 4752, line 2C, to line 10a, and
the amount from Form 4752, line 3C, to line 10b.
PART 1: FRANCHISE TAX
The following tax base calculation involves a five-year average
of net capital. Enter data from the current tax year and four
most recent MBT tax years to complete the five-year table. For
purposes of this table, treat a partial year as a full year. If the
current and four preceding tax periods include any short periods,
the years printed in column headings for this part will not apply
accurately. For example, a financial institution has a fiscal year
end of June 30 and its current tax year is a short year ending
September 30, 2020. That financial institution reports the periods
ending September 30, 2020, June 30, 2020, June 30, 2019, June
30, 2018, and June 30, 2017.
Short periods: For a filing period less than one full year, in lines
11 through 14, 17a, and 17b for each of the five columns enter the
actual number multiplied by a fraction, the numerator of which
is the number of calendar months in the short period, and the
denominator