4902: Schedule of Recapture of Certain Business Tax Credits* (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 4902 is a Corporate Income Tax schedule used to report recapture of previously claimed Michigan Business Tax and Single Business Tax credits listed on the form. It totals the recapture amounts for reporting on the applicable Corporate Income Tax annual return.
Who files this form
Complete the 2024 Form 4902 if you have recapture in tax year 2024 of previously claimed Single Business Tax (SBT) or Michigan Business Tax (MBT) credits listed on the schedule. Recapture means adding back some or all of a previously claimed credit to your tax liability.
A Unitary Business Group (UBG) reporting recapture files one Form 4902, even if several members have credits being recaptured.
What you'll need
Have the following information available, as applicable to the credits being recaptured:
- Your applicable Corporate Income Tax (CIT) annual return, Form 4891, 4905, or 4908, for the taxpayer name and account number.
- Previously filed credit forms. The text refers to Forms 4574, 4584, 4573, C-8000MC, and 4889 for particular credits.
- For investment tax credit calculations, the applicable prior Forms 4570, C-8000ITC, and other return information required by the calculation method you use.
- Asset information requested by the worksheets, including acquisition years, sales proceeds, federal gains or losses, adjusted federal basis, and the applicable apportionment percentage.
UBGs must provide a table identifying each member whose credits are being recaptured. Include each member’s FEIN or TR number, each credit’s name or type, and the recapture amount for each credit by member.
How to file
Include completed Form 4902 as part of your tax return filing.
- Enter the taxpayer name and account number as reported on page 1 of your applicable CIT annual return.
- Enter each credit’s recapture amount on the appropriate line.
- Add lines 1 through 15 and enter the total on line 16.
- Carry that total to Form 4891, line 42; Form 4905, line 30; or Form 4908, line 23, as applicable.
For a UBG, enter the Designated Member’s name in the Taxpayer Name field and its account number in the FEIN field. Combine all members’ recapture amounts by credit type. Attach one Form 4902 and a copy of the member table to the applicable CIT annual return.
The supplied text does not give a mailing address or e-file directions.
Common mistakes
- Using the wrong basis for assets moved out of Michigan. MBT Worksheet 1c requires adjusted basis as used for federal purposes, not a recomputed MBT basis.
- Copying the wrong historical line numbers. The MBT Worksheet 2 line references use the 2010 and 2011 Form 4570. The text warns that the 2008 and 2009 forms have different line numbers.
- Using an original return after an amendment. For SBT Method B, use the amended C-8000ITC figures rather than the original figures. Where multiple returns were filed for a tax year, use the latest return as directed.
- Treating the assignee as responsible for historic preservation recapture. The note says responsibility stays with the qualified taxpayer that received the certificate of completed rehabilitation, not the assignee.
Questions people ask
Can selling an asset trigger investment tax credit recapture?
Yes. Disposing of an asset, or moving it out of Michigan, creates recapture of the investment tax credit described in the text.
Does each UBG member submit a separate Form 4902?
No. The group attaches only one Form 4902 to its annual return, along with a table identifying the members whose credits are being recaptured. It reports combined amounts by credit type.
If a Brownfield credit was assigned to someone else, who owes the recapture?
For the SBT “New” Brownfield Credit and MBT Brownfield Redevelopment Credit, the additional liability belongs to the qualified taxpayer originally awarded the credit, even if the credit was assigned.
Is there an exception to historic preservation recapture for a sale or transfer?
Yes. Recapture is not required if the qualified taxpayer enters into a written agreement with the State Historic Preservation Office that allows the transfer or sale of the historic resource.