4596: Miscellaneous Credits for Insurance Companies (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 4596 allows insurance companies to calculate miscellaneous credits for the 2024 Michigan Business Tax. It reports refundable and nonrefundable credits, with totals carried to Form 4588.
Who files this form
Insurance companies use Form 4596 to calculate and claim the miscellaneous Michigan Business Tax (MBT) credits listed on the form. Include the completed form as part of the tax return filing.
Each credit has strict eligibility requirements. Only taxpayers with an awarded certificated credit that has not been fully claimed or used may elect to be MBT taxpayers.
The MEGA Photovoltaic Technology, Film Production, and Film Infrastructure credits are available to insurance companies only as assignees, meaning the credits have been assigned to them.
What you'll need
Have your taxpayer name and Federal Employer Identification Number (FEIN) or TR Number ready. Depending on the credits you claim, you will also need:
- WDSB Credit: Attach a copy of the document from the Department of Licensing and Regulatory Affairs (LARA) supporting the credit.
- MEGA Employment Tax Credit: Attach the Annual Tax Credit Certificate.
- MEGA Photovoltaic Technology Credit: Attach a copy of the assignment certificate received from MEGA.
- Film Production Credit: Include a copy of the MBT Film Credit Assignment (Form 4589).
- Renaissance Zone Credit: Complete and include Form 4595. Use a separate form for each zone. Use the Business Income Worksheet (Worksheet 4746) to calculate pro forma business income.
- Historic Preservation or Brownfield Redevelopment Credit: Complete Form 4584.
- Film Infrastructure Credit: Attach the Investment Expenditure Certificate and Form 4589. You will also need any unused credit amount from the previous period's MBT return.
Form 4588, line 23, supplies the tax amount used in Part 2.
How to file
Include completed Form 4596 as part of your tax return filing, along with the required credit certificates and supporting forms.
- In Part 1, add the refundable credits on lines 1 through 4. Enter the total on line 5 and carry it to Form 4588, line 52.
- In Part 2, follow the calculations and skip directions for each credit. Add lines 13, 15, 18b, 20, and 25. Enter the total on line 28 and carry it to Form 4588, line 24.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Leaving out required certificates. The MEGA Employment Tax Credit and MEGA Photovoltaic Technology Credit will be disallowed if the required certificate is not attached.
- Claiming a credit without checking eligibility. The text warns that the credits have strict eligibility requirements.
- Skipping special Renaissance Zone calculations. Insurance companies must calculate business income and a sales factor for this credit, even though they do not normally use those calculations. Also review the changed instructions for certain taxpayers on Form 4595, line 24.
- Overlooking Film Infrastructure restrictions. A taxpayer must not be delinquent on a tax or other obligation owed to Michigan, or be owned by or under common control with a delinquent entity. A direct expenditure used for a Film Production Credit cannot also be used for this credit.
Questions people ask
How is the Compensation Credit calculated?
Multiply Michigan compensation on line 7 by 0.37% (0.0037). The allowable credit on line 13 is the smaller of that amount or the limit calculated on line 12.
What if I am not claiming the Compensation Credit?
Skip to line 14 and enter the amount from Form 4588, line 23.
What if my company is in more than one Renaissance Zone?
Complete and include a separate Form 4595 for each zone. Add line 25b from each form and enter the total on Form 4596, line 15.
Can unused Film Infrastructure Credit be carried forward?
Yes. Credit exceeding the tax liability for the tax year may be carried forward to offset tax liability in later years for up to ten years.
Do I claim accelerated refundable Historic Preservation or Brownfield Redevelopment credits here?
No. Accelerated refundable credits are claimed on Form 4889. Form 4596 is used for the nonrefundable credits and their nonrefundable carryforwards.