6074: MICHIGAN Schedule of Tiered Entities (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 6074, Schedule of Tiered Entities, reports indirect Michigan Flow-Through Entity (FTE) tax credits and related income adjustments. It identifies each entity in the chain of ownership and reports allocated shares of credits, deducted FTE taxes, and refunds included i
Who files this form
You must complete Form 6074 if you claim an indirect credit on Form 6072, Michigan Schedule FTE, Part 2.
An indirect credit comes from your ownership in a credit-generating entity (CGE) through one or more other flow-through entities. Those intermediate entities do not have to elect to pay Michigan Flow-Through Entity (FTE) tax. They may include a trust or estate.
What you'll need
Gather the information report from the flow-through entity you directly own. It may be provided in Schedule K-1 notes, a Michigan Flow-Through Entity Tax Information Report, or another format.
You need information about:
- The CGE and each entity in the ownership chain leading to you.
- Each entity or person's name, FEIN or SSN, and tax year end.
- Credit percentages and allocated tax amounts at each tier.
- Allocated shares of Michigan FTE tax deductions and refunds included in income.
Include a copy of Schedule K-1 for each flow-through entity and credit or adjustment claimed, along with any related K-1 notes, Michigan Flow-Through Entity Tax Information Report, or equivalent information received.
If the report does not provide enough detail, ask the flow-through entity for the missing information.
How to file
Complete Form 6074 before completing Form 6072.
- Enter your name, identifying number, and tax year end.
- Complete a separate table for each indirect credit and each ownership chain. Use separate tables for credits from different tax years of the same CGE.
- List the CGE first, followed by each direct owner in the chain, ending with you. If you need continuation tables, leave their CGE rows blank and use the same indirect credit number.
- Complete additional Forms 6074 if you need more than three tables.
- Carry the applicable information to Form 6072, Part 2, following that form's instructions.
- Include Form 6074 with Form 6072, Part 2, and attach the required supporting documents.
Common mistakes
- Claiming a credit before the CGE files its return. You cannot file Form 6074 or claim the FTE credit on an annual return until the CGE has filed the annual return generating that credit. The instructions also advise that the CGE's return ideally should be processed without error.
- Leaving out Form 6074. Indirect credits may be denied if Form 6074 does not accompany Form 6072, Part 2.
- Claiming current-year credits funded too late. Do not report a CGE's current-year credits that were not funded by its credit funding deadline. Those credits are reportable in a later tax year once the CGE pays the tax.
- Using incomplete information. Missing details from the flow-through entity can lead to significant processing delays or denial of the credit. Request the information needed to complete the form.
Questions people ask
What if I receive credits from the same CGE through different ownership chains?
Use a separate table for each ownership chain, treating each as a separate indirect credit.
Can spouses filing jointly combine their credits in one table?
Spouses who receive FTE tax credits from the same CGE should complete separate tables to report their individually allocated credits.
Where do prior-year late-funded credits go?
Report qualifying prior-year late-funded credits in Column E. If you also have timely funded current-year credits from the same CGE, report those in a separate table in Column F.
Can I claim a late-funded credit after I am no longer a member of the CGE?
Yes. The instructions state that a late-funded credit may be claimed in a future tax year even if you are no longer a member when the CGE actually pays the FTE tax.