4573: Miscellaneous Nonrefundable Credits (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 4573 is used to calculate miscellaneous nonrefundable credits for the 2024 Michigan Business Tax. It reports credit amounts, certain credit recaptures and carryforwards, and the tax remaining after credits, with credit amounts carried to Form 4568.
Who files this form
Form 4573 is used by standard Michigan Business Tax (MBT) taxpayers to claim certain miscellaneous nonrefundable credits. Each credit has strict eligibility requirements. Credits and allowed carryforwards are generally calculated here and transferred to the MBT Nonrefundable Credits Summary, Form 4568.
Financial institutions may use this form only for these credits:
- Renaissance Zone Credit
- Historic Preservation Credit
- Individual or Family Development Account Credit
- Brownfield Redevelopment Credit
- Assigned Film Infrastructure Credit
Insurance companies use Form 4596 instead.
A unitary business group (UBG) completes one Form 4573 for the group, using the designated member’s name and account number.
What you'll need
The documents you need depend on the credits you claim:
- Annual return and credit summary: Use the name and account number from Form 4567 or Form 4590. Form 4568 supplies tax amounts and receives the credits calculated on Form 4573.
- MEDC certificates: Attach the required certificate for the Start-Up Business Credit or Next Energy Business Activity Credit.
- Renaissance Zone schedule: Complete and include Form 4595. Use a separate schedule for each zone if you are located in more than one.
- Refund or carryforward elections: Complete Form 4584 for credits that require it, including Historic Preservation and Brownfield Redevelopment.
- Development account contributions: Attach the Michigan State Housing Development Authority (MSHDA) certificate for the Individual or Family Development Account Credit.
- Film credits: Attach the Qualified Job Training Expenditure Certificate or Investment Expenditure Certificate, as applicable. For an assigned Film Infrastructure Credit, attach Form 4589.
- Unused credits: Have the previous MBT return available for carryforward amounts requested on the form.
For the Start-Up Business Credit, corporations and LLCs taxed as corporations must include Form 4577. Partnerships and LLCs taxed as partnerships must include Form 4578.
UBGs must attach a statement identifying members eligible for entity-specific credits, with the requested information for each member. Attach supporting pro forma tax calculations where required.
Common mistakes
- Missing required certificates: The Next Energy Business Activity Credit will be disallowed without the MEDC certificate. The Individual or Family Development Account Credit will be disallowed without the MSHDA certificate.
- Filling in unavailable credits: Leave lines 1 through 6 blank and skip to line 7. If you are not taking any Part 1 credits, skip to Part 2.
- Using the wrong fiscal-year figures: Fiscal-year filers must calculate all credits using actual numbers from the period covered by the return.
- Putting a UBG pro forma calculation on Form 4567: Attach the supporting calculation as a statement. The instructions say never to transfer it to Form 4567 or display it as that form.
- Claiming the same film expenditure twice: A Film Job Training or Film Infrastructure Credit cannot be claimed for a direct expenditure for which a Film Production Credit was claimed against MBT or withholding tax liability.
Questions people ask
Where do the credits calculated on Form 4573 go?
Generally, they transfer to Form 4568, the MBT Nonrefundable Credits Summary. Each credit line tells you which Form 4568 line to use.
Can unused credits carry forward?
Some can, subject to the rules for that credit. For example, excess Low-Grade Hematite Credit may carry forward for five years, while the Individual or Family Development Account Credit may carry forward for up to ten years.
Can I claim both food retailer credits?
No. A taxpayer claiming the Large Food Retailer Credit cannot also claim the Mid-Size Food Retailer Credit.
What if Start-Up Business Credit recapture is larger than the credit?
Subtract line 8 from line 7. If the result is less than zero, enter it as a negative number on line 9 and carry it to Form 4568, line 15.