5298: City of Detroit Corporate Renaissance Zone Schedule (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Form 5298 is the 2025 City of Detroit Corporate Renaissance Zone Schedule. It uses property, rent, wages and net income to calculate the Renaissance Zone deduction carried to Form 5297.
Who files this form
Form 5298 is the 2025 City of Detroit Corporate Renaissance Zone Schedule for corporations claiming a Renaissance Zone deduction.
To claim the deduction, a corporation must have real and/or personal property in a city Renaissance Zone and conduct business activity there. A corporation cannot qualify if any city or state taxes are delinquent.
The form refers to instructions for additional qualifications, but those instructions were not provided.
What you'll need
Have the following information ready to complete the schedule:
- Taxpayer name and Federal Employer Identification Number (FEIN).
- For a consolidated return, the name and FEIN of the entity in the zone.
- Starting and ending dates qualified to claim the deduction during the tax year, in MM-DD-YYYY format.
- Average net book value of real and tangible personal property, gross annual rent paid for real property, and total wages, salaries and other compensation, separately for city locations and Renaissance Zone locations.
- Net income from Form 5297, line 36.
- The zone’s final year of designation, to select the reduced deduction percentage.
Common mistakes
- Do not claim the deduction if any city or state taxes are delinquent. The form says this disqualifies a corporation.
- Do not overlook the requirement to both have property in the zone and conduct business activity there.
- If the corporation was in the Renaissance Zone for less than a year, the form directs you to see the instructions for line 8.
- The form also directs you to the instructions for additional qualifications and for the average net book value on line 7a. Those instructions were not provided here.
Questions people ask
How is the Renaissance Zone deduction percentage calculated?
Divide zone property and rent on line 8c by city property and rent on line 7c. Divide zone compensation on line 8d by city compensation on line 7d. Add those two percentages, then divide by 2 to get the deduction percentage on line 9d.
How is rent included in the calculation?
Multiply gross annual rent paid for real property by 8. Enter the city amount on line 7b and the Renaissance Zone amount on line 8b.
Does the deduction decrease near the end of the zone’s designation?
Yes. Based on when the tax period begins, the allowed percentage of the tentative deduction is 25% in the final year, 50% in the year immediately before the final year, 75% in the second year before the final year, and 100% in the third or any earlier year before the final year.
Where does the completed deduction amount go?
Multiply the deduction percentage on line 9d by net income from Form 5297, line 36, to calculate the tentative deduction on line 11. Multiply line 11 by the reduced deduction percentage on line 12. Enter the result on line 13 and carry it to Form 5297, line 37.