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Battle Creek Income Tax Department                                                                  Print Form
P.O. Box 1657                              BATTLE CREEK  
Battle  Creek, Michigan 49016-1657  CORPORATION INCOME TAX 
                                     FORM AND INSTRUCTIONS  
                                    For use by corporations doing business in 
                                           the City of Battle Creek

CORPORATE      Corporate tax  rate  is 1.%.
TAX RATE

TAX FORMS      All Battle Creek income tax forms are available on the City 's website, http://www.battlecreekmi.gov/
               City_Government/Permits_and_Forms.htm.

RENAISSANCE    Renaissance Zone 1 through 4 will phase out at the end of calendar year 2015. For instructions on 
PHASE OUT      the Renaissance Zone go to http://www.battlecreekmi.gov/Assets/Permits+Forms/Income+Tax
               +Forms/lndividual+Return s/BC+1040_.pdf

FILING DATE    The due date is April 30th of the following calender year. Those on a fiscal year must file by the last 
               day of the forth month  following the end of the fiscal year. Penalty and interest ($2.00  minimum) will 
               be assessed on all late payments.

PAYMENT OF     Tax due (line 13) of one dollar ($1.00) or more must be paid with return. NOTE: If prior year tax on 
TAX DUE        line 10 is $250.00 or more, estimated income tax payments may be required for next year. See page 
               4 of instructions for information. Make check or money order payable to: CITY OF BATTLE CREEK 
               Mail tax return and payment to: Battle Creek Income Tax, P.O.  Box 1657,Battle Creek Ml, 
               49016-1657.

DISCLAIMER     These instructions are interpretations of the Battle Creek Income Tax Ordinance. The Ordinance will 
NOTICE
               prevail in any disagreement between the instructions and the Ordinance.

               For assistance: find us online at http://www.battlecreekmi.gov/City_Government/Departments/
CONTACT
               lncome_ Tax.htm; call (269) 966-3345,or visit the Battle Creek Income Tax Department at City Hall, 
               10 N Division, Room 114,Battle Creek, MI 49014.

               Failure to attach documentation or attaching incorrect or incomplete documentation will delay 
               processing of the return or result in corrections being made to the return.

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CORPORATIONS REQUIRED TO FILE                                FILING DATE

Every corporation “doing business” in the city, whether      Taxpayers on a calendar year are required to file by April 
or not it has an office or place of business in the city, is 30th of the following calendar year. Those on a fiscal 
required to file an annual City of Battle Creek              year must file by the last day of the fourth month 
Corporation Income Tax Return, Form BC-1120. Attach          following the end of the fiscal year. Returns shall be for 
a copy of federal Form 1120, 1120-A, 1120S, or other         the same calendar year, fiscal year or other accounting 
corporate return form along with Schedule K and all          period as the taxpayer uses for federal income tax 
ancillary schedules filed with the IRS to the Battle Creek   purposes.   
return. 

Corporations cannot elect to file and be taxed as            EXTENSIONS
partnerships. A tax option corporation (S corporation, 
REIT, etc.) is treated as a C corporation.   
                                                             A six month extension is automatically granted without a 
The Battle Creek Income Tax Ordinance specifically           request if all tax due has been paid by the due date of 
exempts financial institutions from taxation. “Financial     the return. Upon filing an APPLICATION FOR 
institutions” are defined as state and national banks,       EXTENSION OF RETURN FORM BC-1120 EXT on or 
trust companies, building and loan associations, savings     before the due date for filing a return, the Income Tax 
and loan associations, credit unions, safety and             Administrator may extend the time for filing up to six 
collateral deposit companies, and any other association,     months. When an extension is requested, the tentative 
joint stock company or corporation at least 90% of 
                                                             tax must be paid. An extension is automatically granted 
whose assets consist of intangible personal property and 
at least 90% of whose gross income consists of               upon payment of the balance due (Form BC-1120EXT, 
dividends, interest or other charges resulting from the      line 3). Failure to pay the balance due invalidates the 
use of money or credit.                                      extension request. An extension filed without a payment 
                                                             will not be accepted. Interest and penalty will be 
MAILING OF RETURN FORMS                                      assessed on taxes paid late even if an extension of time 
                                                             to file is granted. 
Corporation income tax forms will no longer be mailed. 
Forms are available on our web site at: 
http://www.battlecreekmi.gov/City_Government/Permits_        REMITTANCE
and_Forms.htm.   
                                                             The tax due must be paid when filing the return. Make 
RENAISSANCE ZONE DEDUCTION                                   check or money order payable to: CITY OF BATTLE 
                                                             CREEK  
A qualified corporation located and “doing business” in a 
Battle Creek Renaissance Zone may be eligible to claim 
the Renaissance Zone deduction. This deduction allows        MAILING ADDRESS
the corporation to deduct the portion of its income 
earned in a Battle Creek Renaissance Zone from income        Mail return and payment to:   
subject to Battle Creek income tax. A taxpayer is not        BATTLE CREEK INCOME TAX DEPARTMENT   
qualified to claim the deduction if the corporation is       PO BOX 1657  
delinquent for any Michigan or local taxes. A Battle         BATTLE CREEK, MI 49016-1657 
Creek income tax return must be filed to claim this 
deduction. Schedule RZ of BC-1120 is required to be          EFFECTIVE DATE OF TAX
attached to the corporation return when claiming the 
Renaissance Zone deduction. 
                                                             The City of Battle Creek income tax became effective 
A taxpayer claiming the RZ deduction uses Schedule RZ        July 1, 1967. Corporations are required to pay the tax 
to compute the deduction. Schedule RZ of BC-                 each year on that part of its net income attributable to 
1120SCRZ is designed to handle all calculations relative     business activity conducted in Battle Creek, 
to the deduction. See the instructions for Schedule RZ of    commencing with its first year ending after July 1, 1967.   
BC-1120SCRZ and the form for additional information.   
                                                             PAGE 1 INSTRUCTIONS
TAX RATE
                                                             Lines 1 – 9. Follow the instructions printed on the return 
The tax rate is 1. %.                                        form. 

                                                                                                                    pg. 1

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Line 10.Corporations qualified to claim a Renaissance PREPARER DISCLOSURE
Zone deduction use Schedule RZ of BC-1120 to
calculate the deduction. Enter the deduction as Line 20. By marking (X) the “Yes” box on line 20, the
calculated on Schedule RZ, line 15. corporation is authorizing the Battle Creek Income Tax
Department to: contact the preparer for answers to any
Line 11.Enter the total income subject to tax (line 9 less
line 10). questions that may arise relating to its return; and
answer any questions from the preparer about the
Line 12.Compute the tax by multiplying the income return. Also, by marking (X) the “Yes” box on line 20, the
subject to tax (line 12) by the corporation tax rate (1.%) corporation is authorizing the preparer to: provide the
and enter the amount of tax. Income Tax Department with any information about or
missing from the return; contact the Income Tax
TAX PAYMENTS Department for information about the return or the status
of any related refund or payments; and respond to
Line 13. Enter the total of all tax payments made for the notices about math errors, offsets and return
tax year prior to filing the return. The payments consist preparation.
of any credit forward from the prior year’s tax return,
estimated income tax payments, extension payments PAGE 2 INSTRUCTIONS
and tax paid by a partnership on behalf of the
corporation. When reporting tax paid by a partnership,
SCHEDULE S
attach a separate schedule listing the partnership name,
federal employer identification number and the amount
Tax option corporations (S corporations) must file as C
of tax paid by the partnership. corporations. Schedule F is used to reconcile the
amount reported on Form BC-1120, line 1, page 1, with
OVERPAYMENT the amounts on federal Form 1120S and Schedule K.

Line 14. If the total tax payments (line 13) is greater than
the tax (line 12) subtract line 12 from line 13 and enter SCHEDULE C
the overpayment.
Column 1 – Add – Items Not Deductible
Line 15. Enter all or any portion of the overpayment to
be credited forward and applied as a payment to the Line 1. Enter on line 3 all expenses (including interest
corporation’s next year estimated tax. expense) incurred in connection with the derivation of
income not subject to Battle Creek Income tax.
Line 16. Reserved for future use.
Line 2. Enter on line 3 the amount of Battle Creek
Lines 17 and 18. Enter the amount of your overpayment income paid or accrued during the tax year.
to be refunded. A refund will be issued via a paper
refund check unless you elect to receive the refund via Line 3. Enter on line 3 the nondeductible portion of a
direct deposit to the corporation’s bank account. To elect loss from the sale or exchange of property acquired prior
to receive the refund via an electronic direct deposit, to July 1, 1967. The portion of the loss occurring prior to
mark (X) the box on line 18, Refund – Direct Deposit and the inception of the Ordinance, July 1, 1967 is not
enter the bank routing number (line 18a), the bank recognized. The amount of loss occurring prior to July 1,
account number (line 18b) and the account type (line 1967, is determined by either (1) computing the
18c). difference between the total gain or loss for the property
as reported for federal income tax purposes and the
Line 19. If tax (line 12) is greater than the total payments Battle Creek taxable portion of the loss computed by
(line 13) subtract line 13 from line 12 and enter the July 1, 1967, (the June 30,1967, closing price for traded
balance due. securities) for the basis in determining or loss; or (2) by
multiplying the loss for the entire holding period, as
To pay with a check or money order make the check or computed for federal income tax purposes, by a fraction,
money order payable to the CITY OF BATTLE CREEK the numerator being the number of months the property
and mail the payment with the return to: Battle Creek was held prior to July 1, 1967 and denominator being the
Income Tax Department, P.O. Box 1657, Battle Creek, total number of months the property was held. See line
Michigan 49016-1657. 10 for instructions relative to gains from sales or
exchanges of property acquired prior to July 1, 1967.

pg. 2

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Capital loss from U.S. Government obligations included The business allocation percentage formula must be
in income reported on page 1, line 1, are not deductible. used by corporations “doing business” both within and
Remove these losses by including them in the amount outside the City of Battle Creek who have not been
reported on line 3. approved to use separate accounting.

Line 4. Reserved for future use. Line 1a. Enter in column 1 the average net book value of
all real and tangible personal property owned by the
Line 5. Enter the losses from entities filing as business, regardless of location, and in column 2, show
partnerships included in taxable income reported on the net book value of the real and tangible personal
page 1, line 1. property owned and located or used in the City of Battle
Creek. The average net book value of real and tangible
Column 2 – Deduct – Items Not Taxable and Allowable personal property may be determined by adding the net
Deductions book values at the beginning of the year and the net
Line 7. Enter the amount of interest income from book values at the end of the year and dividing the sum
obligations of the United States, the states or by two.
subordinate units of government of the state that is
included in taxable income reported on page 1, line 1. Line 1b. Enter in column 1 the gross annual rent
multiplied by 8 for all rented real property regardless of
Line 8. If you reported dividend income, enter on this line location. In column 2 show the gross annual rent
the amount of the dividend-received deduction allowed multiplied by 8 for rented real property located in the City
by the Federal Internal Revenue Code for dividends of Battle Creek. Gross annual rent refers to real property
only, rented or leased during the taxable period, and
received.
should include the actual sums of money or other
consideration paid, directly or indirectly, by the taxpayer
Lines 9 & 10. Taxpayers may deduct income, war profits
for the use or possession of such property.
and excess profits taxes imposed by foreign countries or
Line 2. Enter in column 1 the total compensation paid to
possessions of the United States, allocable to income
all employees during the year and in column 2 show the
included in taxable net income, any part of which would
amount of compensation paid to employees for work or
be allowable as a deduction in determining federal
services performed within the City of Battle Creek during
taxable income under the applicable provisions of the
the year.
Federal Internal Revenue Code.
Line 3. Enter in column 1 the total gross revenue from all
If a foreign tax credit, rather than a foreign tax deduction,
sales or services rendered during the year, and in
was claimed on your federal return, enter on line 9 the
column 2 show the amount of revenue derived from
portion of the foreign tax credit which was grossed up
sales made or services rendered in the City of Battle
and included in your Battle Creek return as dividends
Creek during the year. A corporation must be “doing
received.
business” outside of Battle Creek to allocate net profit (or
loss).
Enter on line 10 the "foreign taxes paid or accrued"
portion of the foreign tax credit claimed on the federal
Separate Accounting - The taxpayer may request, or the
return, not in excess of the federal limitations. The
balance of your foreign tax credit is not deductible. administrator may require, use of the separate
accounting method. If such method is requested, the
Line 11. Enter on line 11 the nontaxable portion of a gain administrator may require a detailed statement to
from the sale or exchange of property acquired prior to determine whether the net profits attributable to the City
July 1, 1967. The portion of the gain occurring prior to will be apportioned with reasonable accuracy (Ordinance
the inception of the Ordinance, July 1, 1967, is not
Section 19).
recognized. Refer to the instructions for Schedule E, line
3 for computation instructions.
Generally, a corporation that is unitary in nature (i.e., has
central management, purchasing, warehousing,
Capital gains from US Government obligations included
advertising, etc.) cannot use separate accounting.
in income reported on page 1, line 1, are not taxable.
Taxpayers allocating on any basis other than separate
Remove these gains by including them in the amount
accounting shall include all interest, dividends and other
reported on line 10.
non-operating income to arrive at the total income
subject to the allocation percentage.
Line 12. Enter income from entities filing as partnerships
included in taxable income reported on page 1, line 1. Taxpayers using separate accounting shall include in
income subject to tax a proportionate share of dividends,
SCHEDULE D interest and other non-operating income of the total
corporation. This type of income is apportioned to Battle
pg. 3

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Creek activity on the same basis as general B. A corporation filing on a fiscal year or a short tax
administrative and overhead costs are apportioned. year basis must make the first quarterly estimated
income tax payment within four (4) months after the
beginning of each fiscal year or short period. For
SCHEDULE G example, if a fiscal year begins on April 1st, the first
quarterly payment is due on or before July 31st of the
tax year. The remaining installments must be paid on
Line 1. Net operating losses carried forward are to be
or before the last day of the 6th, 9th and 13th months
reported on this line. There is no provision for carrying after the beginning of the tax year.
back losses to prior tax years. Carryover losses are
allocated to Battle Creek at the same apportionment C. Filing and Payment: Corporate estimated tax
percentage reported for the year in which the loss was payments should be mailed to: Battle Creek Income
sustained. If all business was not conducted in Battle Tax Department, P.O. Box 1657, Battle Creek, MI
Creek in the year in which the loss was sustained, use 49016-1657. The estimated tax may be paid in full by
the due date of the first quarterly installment.
the business allocation percentage formula to arrive at
the deductible portion of the loss. Attach a schedule
showing the computation for the amount reported on
ASSISTANCE
Line 1.
For assistance find us online at
Line 2. Enter on this line the net capital loss carryover
http://www.battlecreekmi.gov/City_Government/Departm
applicable to Battle Creek. Net capital losses sustained
ents/Income_Tax.htm, call (269) 966-3345, or visit the
by a corporation may be carried forward in the same
Battle Creek Income Tax Department at City Hall, 10 N
manner as under the Federal Internal Revenue Code. If
Division, Room 114, Battle Creek, Michigan 49014.
all business was not conducted in Battle Creek in the
year in which the loss was sustained, use the business
allocation percentage formula for the year of the loss to
calculate the deductible portion of the loss. Attach a NOTICE
schedule showing your computation of the amount
reported on this line. These instructions are interpretations of the Battle Creek
Income Tax Ordinance. The Ordinance will prevail in any
Line 3. A corporation who is a partner in a business disagreement between the instructions and the
activity taxed as a partnership that has business activity Ordinance.
in Battle Creek must enter on this line their portion of the
Battle Creek taxable income or loss from the
partnership. Attach a schedule showing the computation
for the amount reported on this line including the name
and taxpayer identification number of the partnership.

ESTIMATED INCOME TAX PAYMENTS

1. WHO MUST FILE:
Every corporation subject to the tax on all or part of its
net profits must make estimated income tax payments
using Form BC-1120ES or Form CF-1120ES.
Estimated income tax payments are not required from
corporations if the estimated tax is two hundred fifty
dollars ($250.00) or less.

2. WHEN AND WHERE TO FILE AND PAY:
A. Calendar year taxpayers must make the first
estimated payment on or before April 30th of the
year. The estimated tax is payable in equal
installments on or before April 30th, June 30th,
September 30th of the tax year and January 31st of
the following year.

pg. 4

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