4947: Schedule of Certificated Credits (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 4947, Schedule of Certificated Credits, reports certificated nonrefundable and refundable credits and recapture of certain business tax credits. These amounts are used to calculate the pro forma Corporate Income Tax liability that is part of calculating Michigan Bus
Who files this form
Form 4947 is for qualified taxpayers that elect to file Michigan Business Tax (MBT) for tax years ending after 2011. It identifies certificated credits and certain credit recaptures used to calculate pro forma Corporate Income Tax (CIT) liability.
Only a limited number of the listed credits and recaptures apply to financial institutions or insurance companies. Insurance companies calculate certificated credits separately on Forms 4596 and 4974.
UBGs complete one Form 4947 for the group, using the designated member’s name and account number.
What you'll need
Have the applicable MBT annual return available so the name and account number match page 1: Form 4567, Form 4590, or Form 4588.
Depending on the credits or recaptures you report, you may need:
- Form 4568: Nonrefundable Credits Summary.
- Form 4570: Credits for Compensation, Investment, and Research and Development.
- Form 4573: Miscellaneous Nonrefundable Credits.
- Form 4574: Refundable Credits.
- Form 4585: Investment Tax Credit Recapture From Sale of Assets Acquired Under Single Business Tax.
- Form 4587: Schedule of Recapture of Certain Business Tax Credits.
- Form 4595: Renaissance Zone Credit Schedule.
For MBT investment tax credit recapture, the worksheets also call for asset acquisition years, sale proceeds, gains or losses, adjusted federal basis where applicable, prior acquisition-year Form 4570 amounts, and CIT apportionment percentages from Form 4891 or Form 4908.
Common mistakes
- Reporting amounts that are not on a source form. Do not report a credit or recapture on Form 4947 unless it is reported on one of the source forms listed in the instructions.
- Filling in expired or unavailable lines. Leave lines 1, 14, 16, 17, 18, 21, 30, and 35 blank.
- Using the wrong Renaissance Zone amount. Line 2 uses Form 4595, line 25b, only when certificated status is properly claimed on Form 4595, line 2. Do not use the amount from Form 4573 or Form 4596.
- Mixing refundable and nonrefundable credits. Use each line only for the classification specified. Do not report refundable Historic Preservation or Brownfield credits claimed as accelerated credits on Form 4889.
- Entering negative amounts in Parts 2 or 3. The form says these amounts may not be less than zero.
- Using a recomputed MBT basis on Worksheet 1c. Use adjusted basis as used for federal purposes instead.
Questions people ask
Where do the totals from Form 4947 go?
Carry line 11 to Form 4946, line 30, or Form 4975, line 8. Carry line 28 to Form 4946, line 32, or Form 4975, line 10. Carry line 39 to Form 4946, line 34, or Form 4975, line 12.
Can I skip a part that does not apply?
If you are not taking any credits in Part 1, skip to Part 2. If you are not reporting any recaptures in Part 2, skip to Part 3.
What if I have activity in more than one certificated Renaissance Zone?
File a separate Form 4595 for each zone. On Form 4947, line 2, report the combined credits from line 25b of those forms for which certificated status is properly claimed on line 2.
Can I still claim a MEGA Plug-In Traction Battery Manufacturing Credit carryforward?
The credit is no longer available as a newly arising credit. However, an unused credit carryforward from the immediately preceding tax year may still be claimed on line 7, if available. Leave line 35 blank.