4574: Refundable Credits (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 4574 is used to calculate and claim refundable credits for the 2024 Michigan Business Tax. It reports individual credit amounts and the total carried to the applicable MBT annual return. Unless otherwise specified, credit amounts exceeding the taxpayer’s tax liabili
Who files this form
Use 2024 Form 4574 to claim eligible Michigan Business Tax (MBT) refundable credits as a standard taxpayer. Only taxpayers with an awarded certificated credit that has not been fully claimed or used may elect to be MBT taxpayers.
Financial institutions may use this form only for:
- The MEGA Employment Tax Credit.
- An assigned MEGA Photovoltaic Technology Credit.
- An assigned Film Production Credit.
Insurance companies use Form 4596 instead to claim credits for which they qualify.
A Unitary Business Group (UBG) completes one Form 4574 for the group.
What you'll need
Have your taxpayer name and account number as shown on your MBT annual return. Gather the documents that apply to the credits you claim:
- Personal Property Tax Credit: Attach property tax bills identifying eligible property and proof that the taxes were paid during the tax year.
- Workers’ Disability Supplemental Benefit Credit: Attach the supporting document provided by the Department of Licensing and Regulatory Affairs (LARA).
- Next Energy Payroll Credit: Have the zone property's street address, city and parcel number, plus the eligible payroll amount.
- MEGA Employment Tax Credit: Attach the Annual Tax Credit Certificate.
- Farmland Preservation Credit: Complete Form 4594 and use the credit amount from line 29.
- MEGA Photovoltaic Technology Credit: Attach the Annual Tax Credit Certificate or, for an assigned credit, the assignment certificate.
- Film Production Credit: Attach the Post-Production Certificate or, for an assigned credit, Treasury-approved Form 4589.
- Credits calculated on Form 4584: Complete that form for the MEGA Federal Contract, Anchor Company Payroll, Anchor Company Taxable Value, and applicable MEGA Poly-Silicon Energy Cost and battery credits.
For a UBG claiming entity-specific credits, attach a statement identifying each eligible member and the requested credit information. Provide the required supporting documents for each eligible member.
How to file
Include completed Form 4574 as part of your tax return filing.
- Enter the name and account number shown on page 1 of Form 4567 or Form 4590. A UBG uses its Designated Member's name and account number.
- Complete the lines for the credits you claim and attach the required supporting documents.
- On line 23, add lines 7, 8, 11, 12, 15, 16, 17, 18, 20, 21 and 22.
- Carry the total to Form 4567, line 64, or Form 4590, line 37.
Common mistakes
- Filling in discontinued credit lines: Leave lines 13, 14 and 19 blank.
- Missing required certificates: The MEGA Employment and MEGA Photovoltaic Technology credits will be disallowed if the required certificate is not attached. The Film Production Credit will be disallowed without the required certificate or approved assignment form.
- Claiming Brownfield Redevelopment or Historic Preservation refunds on this form: These refunds are no longer available on Form 4574. Taxpayers may apply for accelerated payment of qualified credits using Form 4889.
- Trying to change a property classification through this credit claim: Treasury will not revise a property classification for these credits. Disputes must go through the property tax appeals process.
Questions people ask
What happens if my credit is larger than my tax liability?
Unless otherwise specified, the amount exceeding your tax liability for the tax year is refunded.
What are the Personal Property Tax Credit rates?
The form uses 35% of taxes paid on eligible industrial personal property, 13.5% on eligible telephone personal property and 10% on eligible natural gas pipeline property.
Who can claim the Next Energy Payroll Credit?
It is available to taxpayers located within an alternative energy Renaissance Zone. Eligible payroll is for employees working on alternative energy-related research, development or manufacturing whose regular workplace is within the zone. The 2024 form multiplies that payroll by 4.25%.
Who can claim the Workers’ Disability Supplemental Benefit Credit?
Self-insured taxpayers may claim the amount authorized by LARA during the tax year. LARA provides the credit amount to the taxpayer.