4974: Schedule of Corporate Income Tax Liability for an MBT Insurance Filer (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 4974 calculates the Corporate Income Tax (CIT) liability of an insurance company filing under the Michigan Business Tax (MBT). It accounts for certificated nonrefundable credits and credit recapture, then compares CIT liability with MBT liability to determine which
Who files this form
Form 4974 is for an insurance company that files under the Michigan Business Tax (MBT). It calculates the company's Corporate Income Tax (CIT) liability and compares it with its MBT liability to determine which is greater.
Only taxpayers with an awarded certificated credit that has not yet been fully claimed or used may elect to be MBT taxpayers.
What you'll need
Have these forms and records available:
- Taxpayer name and Federal Employer Identification Number (FEIN).
- Form 4588, Insurance Company Annual Return for Michigan Business and Retaliatory Taxes. Form 4974 uses amounts from lines 23, 26, and 27.
- Form 4596, Miscellaneous Credits for Insurance Companies. Include the completed form as part of the tax return filing.
- Form 4595, MBT Renaissance Zone Credit Schedule, if claiming a certificated Renaissance Zone credit. A separate Form 4595 is required for each certificated zone in which you have activity.
- Form 4587, Schedule of Recapture of Certain Business Tax Credits and Deductions, if reporting recapture on that form.
- Completed 2024 MBT Insurance Worksheet A. Include a copy with your MBT return.
To complete Worksheet A, gather premium and receipt records, payment and refund records for the listed facilities or associations for January 1 through December 31, 2023, and records of Michigan Examination Fees or Regulatory Fees paid in 2024.
Common mistakes
- Reporting unsupported credits or recapture. Do not report a credit or recapture on Form 4974 unless it is reported on Form 4596 or Form 4587.
- Using the wrong Renaissance Zone credit amount. For line 4, use Form 4595, line 25b, only where certificated status is properly claimed on Form 4595, line 2. Do not use the Renaissance Zone credit amount from Form 4573 or Form 4596.
- Mixing policy types on Worksheet A. For lines 1 through 9 and 16 through 18, use column A for qualified health insurance policies and column B for all other policies.
- Leaving out required supporting forms. Include a copy of Worksheet A with your MBT return and include completed Form 4596 as part of the filing.
Questions people ask
What does Form 4974 calculate?
It calculates CIT liability for an insurance company filing under the MBT and compares that liability with the company's MBT liability.
Where does the amount for line 15 come from?
Complete MBT Insurance Worksheet A and carry its line 24 amount to Form 4974, line 15. Include a copy of Worksheet A with your MBT return.
What if I have credits from more than one certificated Renaissance Zone?
File a separate Form 4595 for each zone. On Form 4974, line 4, combine the credits from line 25b of those forms for which certificated status is properly claimed on Form 4595, line 2.
What do I enter on line 20?
If line 18 is greater than line 19, enter the difference. If line 19 is greater than or equal to line 18, enter zero. Carry line 20 to Form 4588, line 28.