4595: Renaissance Zone Credit Schedule (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Form 4595 is the 2025 Michigan Business Tax Renaissance Zone Credit Schedule. It uses property values, payroll, business activity, and adjusted services performed in a Renaissance Zone to calculate the credit, including any reduction based on the remaining years of the Zone's des
Who files this form
Form 4595 is the 2025 Michigan Business Tax Renaissance Zone Credit Schedule for taxpayers calculating this credit.
If you operate in multiple Renaissance Zones, file a separate Form 4595 for each Zone. The form also includes fields for a unitary business group's designated member and the member reporting on the form.
What you'll need
Have the following information available to complete the schedule:
- Taxpayer name and FEIN or TR number. Unitary business groups also provide the designated member's name and the reporting member's name and identification number.
- Property street address, city, Zone or Subzone, and parcel number.
- Tax liability before this credit from Form 4573, line 13, or Form 4596, line 14.
- Average values of owned property and rent paid, both within the Zone and throughout Michigan.
- Payroll for services performed within the Zone and total Michigan payroll.
- Depreciation for tangible property in the Zone exempt under MCL 211.7ff.
- For partnerships, S corporations and individuals, business income and the apportionment percentage from Form 4567.
- If first located in the Zone before December 1, 2002, the Renaissance Zone Credit allowed in 2007, Michigan payroll in 2007, and the 2007 Business Activity Factor.
Common mistakes
- Do not combine multiple Zones on one schedule. The form says to file a separate Form 4595 for each Zone.
- On line 19a, enter zero if the business income from Form 4567, line 28, is less than zero.
- Complete lines 22a through 22e and line 23 only if you first located within the Zone before December 1, 2002. All other taxpayers must leave these lines blank.
- For line 17, include qualifying property exempt in the tax year and new property that will be exempt in the immediately following tax year.
Questions people ask
How is rented property included in the calculation?
Multiply rent paid for property within the Zone by 8 on line 4. Multiply rent paid for property in Michigan by 8 on line 7. Add each amount to the corresponding average value of owned property.
How is the Business Activity Factor calculated?
Divide total property value within the Zone by total property value in Michigan. Separately, divide Zone payroll by total Michigan payroll. Add those two percentages and divide by 2 to get the Business Activity Factor on line 14.
Does the credit decrease near the end of a Zone's designation?
Yes. The reduced credit table applies these percentages to the tentative credit, based on when the tax period begins:
- Final year of designation: 25%.
- Year immediately before the final year: 50%.
- Second year before the final year: 75%.
- Third or earlier year before the final year: 100%.
Where do I carry the calculated credit?
Carry the reduced Renaissance Zone Credit from line 25b to Form 4573, line 14, or Form 4596, line 15.