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INSTRUCTIONS FOR SCHEDULE RZ OF BC-1065
PARTNERSHIP RENAISSANCE ZONE DEDUCTION
GENERAL INFORMATION Line 5a. In column 1, enter the average net book value of all real and
Four geographic areas within Battle Creek were designated as tangible personal property owned and located in Battle Creek.
Renaissance Zones. This designation grants tax relief to qualified In column 2, enter the average net book value of the real and
partnerships located and conducting business activity within a Battle tangible personal property owned and located in a Battle Creek
Creek Renaissance Zone. In conjunction with the designation of these Renaissance Zone. The average net book value of real and
zones, the Battle Creek Income Tax Ordinance was amended effective tangible personal property may be determined by adding the
January 1, 1997, to include a Renaissance Zone deduction. net book value at the beginning of the year to the net book
value at the end of the year and dividing the sum by two. If the
business was located in the Renaissance Zone for less than a
WHO MAY CLAIM A RENAISSANCE ZONE DEDUCTION year, a monthly average basis is to be used.
A partnership that is located and conducting business activity in a Battle Line 5b. Enter in column 1 the gross annual rent multiplied by 8 for all
Creek Renaissance Zone is qualified to claim the Renaissance Zone rented real property located in Battle Creek. In column 2, show
deduction. If the partnership elects to pay the tax for the partners the the gross annual rent multiplied by 8 for rented real property
deduction is claimed on the partnership return. Otherwise, the deduction located in a Battle Creek Renaissance Zone.
is passed through to the partners. Partners claim the deduction by filing Line 6. Enter in column 1 compensation paid to employees for work or
Schedule RZ of BC-1040 with their individual returns. services performed within Battle Creek. In column 2, enter
compensation paid to employees for work or services
HOW TO CLAIM A RENAISSANCE ZONE DEDUCTION performed within a Battle Creek Renaissance Zone. In column
To claim or pass through the City of Battle Creek Renaissance Zone 3, enter the percentage, column 2 divided by column 1.
deduction, a partnership must file Schedule RZ with their Battle Creek Lines 9a - 9e.
partnership income tax return. Column 1. Enter the allocated income from the partnership return,
Form BC-1065, Schedule E, column 5.
RENAISSANCE ZONE DEDUCTION DISQUALIFIERS Column 2. Enter the net operating loss deduction from the
A partnership is not eligible to claim a Renaissance Zone deduction if the partnership claimed on each partner’s individual Battle
partnership: Creek income tax return.
1. Is delinquent in filing or paying any of the following state or local taxes: Column 3. Enter the retirement plan deduction claimed on each
Michigan single business tax, Michigan income tax, city income tax, partner’s individual Battle Creek income tax return that was
Act 198 industrial abatement tax, commercial abatement tax, based upon income from the partnership.
enterprise zone tax, city utility tax or general property taxes on real or
personal property. ALLOCATED NON-BUSINESS INCOME
2. Owns residential rental property and did not file an affidavit with the Lines 10a -10e.
Battle Creek City Treasurer’s Office by December 31 of the prior tax Column 1. For partners who were qualified residents domiciled in a
year attesting that the property is in compliance with all applicable Battle Creek Renaissance Zone during the tax year, enter
state and local zoning, building and housing laws or codes. the beginning and ending dates of qualification. For other
3. Is located within Battle Creek outside of a Renaissance Zone and partners leave this column blank.
moves to a location within a Renaissance Zone in Battle Creek without Column 2. For each partner who was a resident domiciled in a Battle
approval of the City. Creek Renaissance Zone, enter the partner’s share of the
4. Relocates more than 25 full-time equivalent jobs from one or more interest and dividend income. For all other partners enter
non-Renaissance Zone local governmental units (city, village or zero.
township) and any of the local government units from which a job was Column 3. For each partner who was a resident domiciled in a Battle
relocated adopts a resolution objecting to the relocation within 60 days Creek Renaissance Zone, enter the partner’s share of the
of being notified of the job relocation by the business. income from sale and exchange of property. For all other
partners enter zero.
QUALIFICATION DATE Column 4. For each partner who was a resident domiciled in a Battle
RENAISSANCE ZONES 1 THROUGH 4. A partnership located in Creek Renaissance Zone, enter the partner’s share of
Renaissance Zones 1 through 4 becomes a qualified taxpayer on the first income from rents and royalties. For other partners enter
day after December 31, 2000, that the partnership is located and partner’s share of rent and royalty income from property
conducting business activity in a Battle Creek Renaissance Zone. The located in a Battle Creek Renaissance Zone.
qualification continues until the partnership ceases to be located and Column 5. For each partner who was a resident domiciled in a Battle
conducting business activity in a Battle Creek Renaissance Zone or until Creek Renaissance Zone, enter the partner’s share of
expiration of the Renaissance Zone designation, December 31, 2015. other income. For all other partners enter zero.
DEDUCTIBLE INCOME
ASSISTANCE
A partnership may deduct that portion of its net income from business
activity within a Battle Creek Renaissance Zone. Business activity If you have questions not answered in these instructions, or if you need
consists of two components, business income and non-business income. assistance in preparing your return call (269)966-3345. Questions by
Business income from activity conducted within a Battle Creek mail should be directed to: Battle Creek Income Tax Department, PO Box
Renaissance Zone is determined via a two-factor Renaissance Zone 1657, Battle Creek, Michigan 49016-1657.
apportionment formula. Non-business income is allocated based upon
situs of the income and domicile of the partners. Income used to calculate
any other deduction allowed by the income tax ordinance and income WEBSITE
derived from illegal activity shall not be used to calculate this deduction. Income tax forms, instructions and additional information are available
under the Income Tax Department section of the City of Battle Creek
LINE BY LINE INSTRUCTIONS website, www.battlecreek.org.
Fill out form BC-1065 through Schedule E, before doing Schedule RZ.
Line 1. Enter partnership’s name as shown on the Battle Creek income NOTICE
tax return, Form BC-1065. These instructions are interpretations of the Battle Creek Income Tax
Line 2. Enter the partnership’s Federal Employer Identification Number. Ordinance. The Ordinance will prevail in any disagreement between the
instructions and the Ordinance.
Line 3. Enter the street address of each location in a Battle Creek
Renaissance Zone.
Line 4. Enter the beginning date and ending date the partnership was
qualified to claim the Battle Creek Renaissance Zone Deduction
for the tax year.
RENAISSANCE ZONE APPORTIONMENT
PERCENTAGE - BUSINESS INCOME
The Renaissance Zone apportionment percentage is used by
partnerships located and doing business in Battle Creek in a
Renaissance Zone and outside the Renaissance Zones.
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