4889: Request for Accelerated Payment for the Brownfield Redevelopment Credit and the Historic Preservation Credit (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 4889 requests an accelerated, reduced payment of a Michigan Business Tax Brownfield Redevelopment Credit or Historic Preservation Credit. It identifies the credit and project and calculates the requested payment using 90% of the credit payable for the tax year or, f
Who files this form
Use Form 4889 to request an accelerated, reduced payment of an eligible Michigan Business Tax (MBT) Brownfield Redevelopment Credit or Historic Preservation Credit with a certificate issued for a tax year beginning after December 31, 2011.
To qualify, you must have received the required Brownfield preapproval or Historic Preservation approval before January 1, 2012, or have been assigned a credit that met this requirement for the original holder.
Anyone using this form must also file an MBT Annual Return by that return’s due date and pay the MBT for the same tax year. You must remain in the MBT until the certificated credit and any carryforward are exhausted.
For a unitary business group (UBG), the Designated Member files on behalf of the member entitled to the credit. The election applies to the entire group, which must file and pay any tax due under the MBT.
What you'll need
Have these details ready:
- Your tax-period dates, taxpayer name, Federal Employer Identification Number (FEIN), and complete address.
- For a UBG, the Designated Member’s information and the name and FEIN of the member entitled to the credit.
- The project code from the Michigan Economic Development Corporation (MEDC) or State Historic Preservation Office (SHPO) certificate.
- The credit amount you are claiming.
Attach the applicable MEDC or SHPO certificate. The listed supporting documents are:
- A certificate of completion, assignment certificate, or component completion certificate under section 437.
- A certificate of completed rehabilitation, assignment certificate, or reassignment certificate under section 435.
Line 7 also identifies an assignment approval letter as an attachment, if applicable.
How to file
- Complete one Form 4889 for each credit. Use the taxpayer name and FEIN that will appear on the MBT Annual Return for the same tax period.
- Select the credit type and indicate whether you are the qualified taxpayer or an assignee.
- Enter the project code on line 7 and attach the applicable certificate.
- Enter the credit amount on line 8. On line 9, enter 0.90 if you selected a box on line 5, or 0.86 if you selected a box on line 6. Multiply lines 8 and 9 and enter the result on line 10.
- Have a person authorized to discuss tax matters with the Michigan Department of Treasury sign the form. Complete the signer’s name, title, date, and telephone number.
Mail the completed form, required certificate for each project, and any additional attachments to:
Michigan Department of Treasury
Brownfield/Historic Credit Accelerated Refund
PO Box 30059
Lansing MI 48909
You must also file the MBT Annual Return by its due date.
Common mistakes
- Combining credits on one form. Only one credit may be claimed per Form 4889.
- Using this form for Corporate Income Tax credits. The instructions say not to use it for those credits.
- Overlooking the annual return. Filing Form 4889 does not replace the required MBT Annual Return.
- Claiming future-year amounts under the 90% option. If a credit is paid over several years or has an annual payment limit, the accelerated claim is limited to the amount payable in the tax year claimed. The 86% Special Consideration option has a separate rule for the unused balance.
- Expecting a new address on this form to control the refund mailing. Correspondence and any refund will go to the address on the last-filed MBT return.
Questions people ask
How much of my credit will I receive?
For a credit selected on line 5, you receive 90% of the amount available for the tax period and give up the remaining 10%. The line 6 Special Consideration Historic Preservation option pays 86% of the unused balance issued for tax years beginning after December 31, 2011, and you give up the remaining 14%.
Can I use the 90% option for a Special Consideration Historic Preservation Credit?
Yes. That option is limited to the amount payable in the tax year claimed, rather than the total unused balance.
Can I file before the tax year ends?
Yes. The instructions allow filing before the end of the tax year and state that the department shall pay the refundable credit within 60 days after receiving the claim.
Can I claim the credit without requesting an accelerated payment?
The instructions say you may instead claim a Brownfield or Historic Preservation Credit as nonrefundable on the MBT Annual Return, Form 4567.