4571: Common Credits for Small Businesses (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 4571 calculates the 2025 Michigan Business Tax Small Business Alternative Credit and Gross Receipts Filing Threshold Credit. It reports income, gross receipts, credit reductions and tax remaining after the credits.
Who files this form
The 2025 Form 4571 calculates two Michigan Business Tax credits:
- Small Business Alternative Credit: Complete Part 1 if claiming this credit. Otherwise, skip to Part 2.
- Gross Receipts Filing Threshold Credit: Complete Part 2 if apportioned gross receipts are at least $350,000 but less than $700,000. The form refers to instructions for tax years shorter than 12 months.
The Small Business Alternative Credit is not available if any of these conditions apply:
- Gross receipts exceed $20,000,000.
- Adjusted business income after loss adjustment exceeds $1,899,300.
- Any individual, shareholder or officer has allocated income after loss adjustment over $180,000, or any partner has a distributive share of income after loss adjustment over $180,000, as determined on Form 4577 or 4578.
- Compensation and director fees of a C corporation shareholder or officer exceed $180,000.
What you'll need
Have the following information and forms available for the parts you complete:
- Your taxpayer name and Federal Employer Identification Number (FEIN) or TR Number.
- Form 4568: Tax liability before these credits comes from line 6. Form 4571 also directs you to carry credit amounts to Form 4568.
- Form 4567: Provides business income, federal net operating loss carryover or carryback, gross receipts and the apportionment percentage.
- Your federal return: Provides the gross capital loss used on that return.
- Form 4577 or 4578, as applicable: Used to determine allocated income or distributive share of income. Form 4577 also supplies compensation and director fees for active shareholders and officers.
Taxpayers claiming the Small Business Alternative Credit must complete and include Form 4577 or 4578, except individuals and fiduciaries filing as individuals.
Common mistakes
- Leaving out a required attachment: Small Business Alternative Credit claimants must include Form 4577 or 4578, as applicable, unless they are individuals or fiduciaries filing as individuals.
- Missing a required credit reduction: The Small Business Alternative Credit must be reduced when the specified allocated income or distributive share after loss adjustment is over $160,000 but no more than $180,000. It must also be reduced when gross receipts exceed $19,000,000 but are no more than $20,000,000.
- Entering negative amounts where zero is required: Enter zero on line 9 or 10 if the calculation is less than zero. If line 25 is negative, enter zero on line 27 because no Gross Receipts Filing Threshold Credit is allowed.
- Not checking the final total: Line 28 must equal Form 4568, line 9.
Questions people ask
Can I skip Part 1 if I am not claiming the Small Business Alternative Credit?
Yes. The form directs you to skip to Part 2.
How is the Small Business Alternative Tax calculated?
Multiply adjusted business income on line 8 by 1.8% and enter the result on line 9. If the result is less than zero, enter zero.
Where do I carry the Small Business Alternative Credit?
If gross receipts from Form 4567, line 12, are $19,000,000 or less, carry Form 4571, line 13, to Form 4568, line 7. If gross receipts exceed $19,000,000 but are no more than $20,000,000, complete the gross receipts reduction calculation and carry line 19 to Form 4568, line 7.
Where do I carry the Gross Receipts Filing Threshold Credit?
Carry the credit from Form 4571, line 27, to Form 4568, line 8.