5459: City of Detroit Partnership Renaissance Zone Schedule (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Form 5459 is the 2025 City of Detroit Partnership Renaissance Zone Schedule. It reports property, rent, wages and income used to calculate the Renaissance Zone deduction and each partner’s deduction amount for Form 5458.
Who files this form
Form 5459 is used to calculate the Renaissance Zone deduction for a qualifying Detroit partnership.
To qualify, the partnership must:
- Have real and/or personal property in a Detroit Renaissance Zone and conduct business activity there.
- File a Statement of Eligibility with the City of Detroit and obtain approval for tax relief.
- Meet the eligibility rules, including having no delinquent city or state taxes.
If the partnership elects to pay tax for its partners, it claims the deduction on Form 5458. Otherwise, the deduction passes through to the partners, who claim it on their Detroit individual income tax returns.
When it's due
For the 2025 deduction, a partnership that owns residential rental property must have filed an affidavit with the Detroit City Treasurer’s Office by December 31 of the prior tax year. The affidavit must attest that the property substantially complies with applicable state and local zoning, building and housing laws or codes.
The supplied text does not state a filing due date for Form 5459.
What you'll need
Have these forms and information available:
- Form 5458 completed through Schedule E, including the partnership name, FEIN, partner letter designations and allocated income.
- The beginning and ending dates the partnership qualified for the deduction during the tax year.
- Property values, gross annual real-property rent and employee compensation for Detroit locations and Renaissance Zone locations.
- Each partner’s net operating loss deduction and partnership-related retirement plan deduction claimed on Form 5118, 5119 or 5120, as applicable.
- Each partner’s applicable non-business income and, for qualified Renaissance Zone residents, the beginning and ending dates of qualification.
- The zone’s final year of designation, which determines the allowable deduction percentage.
Eligibility also requires a Statement of Eligibility filed with the City and approval for tax relief. Partnerships owning residential rental property must meet the affidavit requirement.
Common mistakes
- Claiming the deduction while taxes or filings are delinquent. The eligibility rules disqualify partnerships that are delinquent in filing or paying the listed state or local taxes.
- Missing the residential rental property affidavit. Partnerships that own this property must meet the affidavit requirement to qualify.
- Moving into a zone without required approval. A partnership moving from elsewhere in Detroit into a Detroit Renaissance Zone needs City approval.
- Using excluded income. Income used to calculate another deduction under the income tax ordinance, and income from illegal activity, cannot be used for this deduction.
- Completing the forms out of order. Complete Form 5458 through Schedule E before completing Form 5459.
- Using different partner letters. Lines 8, 9 and 10 must use the same partner letter designations as Form 5458.
- Claiming a deduction after the zone designation expires. No deduction is allowed after expiration.
Questions people ask
What if the partnership has more than five partners?
Complete additional copies of page 2, or attach a separate document with the required information for all partners on lines 8, 9 and 10. All other partnership information must still be completed on Form 5459.
What if the business was in the Renaissance Zone for less than a year?
Use a monthly average for the average net book value of owned real and tangible personal property reported on line 6a.
Does the deduction decrease as the zone designation ends?
Yes. The allowable percentage is 100% in the third or earlier year before the final designation year, 75% in the second year before the final year, 50% in the year immediately before the final year and 25% in the final year. No deduction is allowed after the designation expires.
Can every partner include interest and dividends in the non-business income deduction?
No. On line 9, column 2, enter the share of interest and dividend income for a partner who was a resident domiciled in a Detroit Renaissance Zone. Enter zero for all other partners.
Where do the calculated deduction amounts go?
Carry each partner’s amount from line 10, column 3, to the appropriate partner line on Form 5458, line 11a, column 2. The instructions also direct you to carry the total for all partners to that line.