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INSTRUCTIONS FOR SCHEDULE RZ OF BC-1120
CORPORATION RENAISSANCE ZONE DEDUCTION
Four geographic areas within Battle Creek were designated as Line 1. Enter corporation’s name as shown on their Battle Creek
Renaissance Zones (zone 1 thru 4 run from January 1, 2001 through income tax return, Form BC-1120.
December 31, 2015. This designation grants tax relief to a qualified Line 2. Enter the corporation’s Federal Employer Identification
corporation located and conducting business activity within a Battle Number.
Creek Renaissance Zone. In conjunction with the designation of these Line 3. Enter the address of each location in a Battle Creek
zones, the Battle Creek Income Tax Ordinance was amended, Renaissance Zone.
effective January 1, 1997, to include a Renaissance Zone deduction.
Line 4. Enter the beginning date and ending date the corporation was
qualified to claim the Renaissance Zone Deduction for the tax
WHO MAY CLAIM A RENAISSANCE ZONE year.
DEDUCTION
A corporation located and conducting business activity in a Battle RENAISSANCE ZONE APPORTIONMENT
Creek Renaissance Zone is qualified to claim the deduction. PERCENTAGE
The Renaissance Zone apportionment percentage is used by
HOW TO CLAIM A RENAISSANCE ZONE DEDUCTION corporations doing business in Battle Creek inside a Renaissance
To claim a Renaissance Zone deduction, a corporation must file a Zone and outside the Renaissance Zones.
Battle Creek income tax return and attach a completed Schedule RZ of Line 5a. In column 1, enter the average net book value of all real and
BC-1120. tangible personal property owned and located in Battle Creek.
In column 2, enter the average net book value of the real and
tangible personal property owned and located in a Battle
RENAISSANCE ZONE DEDUCTION DISQUALIFIERS Creek Renaissance Zone. The average net book value of real
and tangible personal property may be determined by adding
A corporation is not eligible to claim a Renaissance Zone deduction if the net book value at the beginning of the year to the net book
the corporation: value at the end of the year and dividing the sum by two, or if
1. Is delinquent in filing or paying any of the following state or local the business was located in the Renaissance Zone for less
taxes: Michigan single business tax, Michigan income tax, city than a year, on a monthly average basis.
income tax, Act 198 industrial abatement tax, commercial Line 5b. Enter in column 1 the gross annual rent multiplied by 8 for all
abatement tax, enterprise zone tax, city utility tax or general rented real property located in Battle Creek. In column 2
property taxes. show the gross annual rent multiplied by 8 for rented real
2. Owns residential rental property and did not file an affidavit with the property located in a Battle Creek Renaissance Zone.
Battle Creek City Treasurer’s Office by December 31 of the prior tax Line 6. Enter in column 1 compensation paid to employees for work
year attesting that the property is in compliance with all applicable or services performed within Battle Creek. In column 2, enter
state and local zoning, building and housing laws or codes. compensation paid to employees for work or services
3. Is located within Battle Creek outside of a Renaissance Zone and performed within a Battle Creek Renaissance Zone. In
moves to a location within a Renaissance Zone in Battle Creek column 3, enter the percentage, column 2 divided by column
without approval of the City. 1.
4. Relocates more than twenty five (25) full-time equivalent jobs from Line 9. Enter the total income from BC-1120, line 13.
one or more non-renaissance zone local governmental units (city, Line 12. Compute the tax due at 1.0% (.01). Be sure to enter the tax
village or township) and any of the local government units from due on the corporation return, BC-1120, line 10.
which a job was relocated adopts a resolution objecting to the
relocation within 60 days of being notified of the job relocation by
the business. ASSISTANCE
If you have questions not answered in these instructions, or if you need
assistance in preparing your return call (269)966-3345. Questions by
QUALIFICATION DATE mail should be directed to: Battle Creek Income Tax Department, PO
RENAISSANCE ZONES Box 1657, Battle Creek, Michigan 49016-1657.
A corporation located in Renaissance Zones 1 through 4 becomes a
qualified taxpayer on the first day after December 31, 2000, that the WEBSITE
corporation is located and conducting business activity in a Battle Income tax forms, instructions and additional information are available
Creek Renaissance Zone. The qualification continues until the under the Income Tax Department section of the City of Battle Creek
corporation ceases to be located and conducting business activity in a website, www.battlecreek.org.
Battle Creek Renaissance Zone or until expiration of the Renaissance
Zone designation on December 31, 2015.
NOTICE
DEDUCTIBLE INCOME These instructions are interpretations of the Battle Creek Income Tax
A corporation may deduct that portion of its net income from business Ordinance. The Ordinance will prevail in any disagreement between
activity within a Renaissance Zone. Business activity carried on within the instructions and the Ordinance.
a Battle Creek Renaissance Zone is determined via a two-factor
Renaissance Zone Apportionment factor, property and payroll within a
Renaissance Zone to that in Battle Creek. Income used to calculate
any other deduction allowed by the income tax ordinance and income
derived from illegal activity shall not be used to calculate this
deduction.
LINE BY LINE INSTRUCTIONS
Before filling in Schedule RZ, complete Form BC-1120 through line 8.
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