4570: Credits for Compensation, Investment, and Research and Development (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 4570 calculates the 2025 Michigan Business Tax credits for compensation, investment, and research and development. It reports Michigan compensation, eligible capital investments, investment recapture amounts, and research and development expenses in Michigan to dete
Who files this form
Form 4570 is used to calculate Michigan Business Tax credits for compensation, investment, and research and development for tax year 2025.
The form does not give full eligibility rules. It specifically says to read the instructions before claiming the Investment Tax Credit. If you are not claiming the Compensation Credit, skip Part 1 and go to Part 2.
What you'll need
Have the following information available for the credits you are calculating:
- Your taxpayer name and Federal Employer Identification Number (FEIN) or TR Number.
- Michigan compensation and research and development expenses in Michigan.
- Asset details for the investment tables, including descriptions, locations, acquisition dates, costs, and federal adjusted basis where requested.
- For assets sold, disposed of, or transferred, the relevant dates, gross sales prices, gains or losses, and federal adjusted basis where requested.
- Form 4568, line 3, and Form 4567, line 51, or Form 4590, line 22.
- Form 4567, line 11c, if subject to apportionment.
- Worksheet 2, total of column U, and Form 4585, line 7, for the net recapture calculation on line 19.
Common mistakes
- Do not claim the Investment Tax Credit without checking the instructions for eligibility, as the form directs.
- Do not use line 9 in any calculation. It is for statistical purposes only.
- Leave line 23 empty and skip to line 24.
- Remember that a loss in column F of Table 4 or Table 5 increases recapture.
- Check that line 34 equals Form 4568, line 6.
Questions people ask
How is the Compensation Credit calculated?
Enter Michigan compensation on line 2 and multiply it by 0.37% on line 3. The combined compensation and investment credits are then subject to the limit calculated in Part 3.
What if I am not claiming the Investment Tax Credit?
The form directs you to carry the amount from line 3 to line 21.
What is the limit on the combined compensation and investment credits?
Line 26 is the lesser of line 21 or line 25. Line 25 is 52% of line 24, which comes from Form 4567, line 51, or Form 4590, line 22. Carry the allowable credit to Form 4568, line 4a.
How is the Research and Development Credit calculated?
Multiply research and development expenses in Michigan by 1.9%. The credit is the lesser of that result or the ceiling on line 32. The ceiling is 65% of line 24 minus the allowable compensation and investment credit on line 26. Carry the credit to Form 4568, line 5.
What happens if line 20 is negative?
Carry the negative amount to Form 4568, line 4b. On line 21, enter only the amount from line 3. Enter the line 20 amount as a positive number on line 27.