4585: Investment Tax Credit Recapture from Sale of Assets Acquired Under Single Business Tax (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 4585 calculates the 2025 Michigan Business Tax recapture of Investment Tax Credits for assets acquired under the Single Business Tax. It reports recapture bases, rates, and amounts for disposed assets, including assets transferred outside Michigan.
Who files this form
Form 4585 is used to calculate Michigan Business Tax recapture of the Single Business Tax (SBT) Investment Tax Credit for assets acquired in an SBT tax year and disposed of in 2025.
For a Unitary Business Group, the form asks for the designated member’s name and identification number, plus the name and identification number of the member reporting on this form.
What you'll need
Have these forms and details available:
- Your taxpayer name and FEIN or TR number. Unitary Business Groups also need the reporting member’s name and FEIN or TR number.
- Asset details grouped by acquisition year, including the acquisition tax year’s end date, combined sales prices, and net gains or losses. For assets transferred outside Michigan, the form asks for combined adjusted federal basis.
- Form 4567, line 11c, for the MBT apportionment percentage.
- All prior SBT Forms C-8000ITC filed for tax years beginning on or after January 1, 2000. You will need amounts from lines 24, 33, and 36.
- Form 4569, line 3, for all periods ending in 2008 or 2009, showing SBT ITC carryforward used.
- Form 4570 and, if applicable, Worksheet 2 in its instructions, to report the recapture total.
Common mistakes
- Including cents: The form directs you to enter dollar amounts in whole dollars only.
- Listing acquisition years out of order: In Part 1, enter years in date order, oldest first. Part 2 also requires SBT tax years in date order.
- Not grouping amounts by acquisition year: Part 1, columns B and C, require totals by acquisition year.
- Using a different apportionment percentage for earlier acquisition years: For every year in line 1, column D, and line 2, column E, use the MBT apportionment percentage from Form 4567, line 11c.
- Leaving out prior credit information: Part 2 calls for all prior Forms C-8000ITC for tax years beginning on or after January 1, 2000, and Form 4569, line 3, amounts for all periods ending in 2008 or 2009.
Questions people ask
Which asset categories does the form cover?
Part 1 has separate lines for depreciable tangible assets, depreciable mobile tangible assets, and assets transferred outside Michigan.
Which date do I enter for an asset’s acquisition year?
Enter the end date of the taxable year in which the disposed asset was acquired, using MM-DD-YYYY format.
How is the recapture amount calculated in Part 3?
For each acquisition year, add the amounts from columns 1F, 2F, and 3B to get the total recapture base. Multiply that base by the year-specific recapture percentage from line 4, column E.
Where does the total recapture amount go?
Enter the total of line 6, column D, on line 7. Add it to the total of Form 4570, Worksheet 2, column U, if applicable, and carry the sum to Form 4570, line 19.