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2021 MICHIGAN 

                  Business 

                                         Tax

                INSURANCE COMPANIES

This booklet contains information 
         on completing a Michigan 
B u s i n e s s  Tax return for calendar 
                  year 2021.             

  E-filing your return is easy, fast, and secure!

  Visit Treasury’s Web site at  
www.MIfastfile.org for a list of e-file 
resources and how to find an e-file  
provider.

WWW.MIFASTFILE.ORG

                               FILING DUE DATE: 

                ALL FILERS — ON OR BEFORE 

                                MARCH 1, 2022

                  WWW.MICHIGAN.GOV/TAXES
         This booklet is intended as a guide to help complete your return. It does not take the place of the law.
                                                 Michigan Department of Treasury — 4592 (Rev. 12-21)

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No text to extract.

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                                   Important Information for 2021
Michigan Business Tax (MBT) Election                                       certificate,  or  reassignment  certificate  is  issued  under  section 
                                                                           435 to a taxpayer, beginning on or after January 1, 2012, the 
Only those taxpayers that have been approved to receive, have              taxpayer  may  elect  to  claim  an  accelerated  refund  for  90 
received,  or  have  been  assigned  a  certificated  credit  that  has    percent of the amount of that certificate.
not  yet  fully  been  claimed  or  utilized  may  elect  to  be  MBT 
taxpayers.  If  a  taxpayer  files  an  MBT  return  for  its  first  tax  If section 437 or 435 provides that payment of a credit will be 
year  beginning  after  December  31,  2011,  the  taxpayer  makes         made over a period of years or limits the annual amount of a 
the election to file and pay under the MBT until the certificated          payment,  an  accelerated  refund  may  only  be  claimed  for  the 
credit  and  any  carryforward  of  that  credit  are  exhausted.          amount payable in the year claimed.
Except  for  taxpayers  with  certain  qualifying  brownfield              However,  a  taxpayer  claiming  the  Special  Consideration 
redevelopment  or  historical  preservation  certificated  credits,        Historic Preservation Credit under section 435(20) may elect to 
the election must be made for the first tax year beginning after           claim an accelerated  refund for the balance of the credit, but 
December 31, 2011. Once the election is made and the return                the amount of that refund shall be equal to 86 percent of the 
is submitted, the taxpayer may not amend the return to revoke              amount of the credit.
the  election.  Find  a  list  of  certificated  credits  in  the  General 
                                                                           For  more  details,  see  the Request  for  Reduced  Refundable 
Information  for  Standard  Taxpayers  in  the MBT Forms and 
                                                                           Credit  Payout  for  the  Brownfield  Redevelopment  Credit  and 
Instructions for Standard Taxpayers (Form 4600).
                                                                           Historic Preservation Credit (Form 4889). Michigan Tax Forms 
If  an  insurance  company  does  not  have  a  certificated  credit,      are  online  at www.michigan.gov/taxes.  An  accelerated  credit 
it  cannot  make  the  MBT  election  and  is  subject  to  the  CIT       refund will be paid within 60 days after Form 4889 is filed.
beginning January 1, 2012.
                                                                           Brief Overview of the CIT
Helpful Hints for Completing an MBT Return                                 The CIT takes effect January 1, 2012, and replaces the MBT, 
Estimates                                                                  except  for  certain  businesses  that  wish  to  retain  certain 
                                                                           certificated credits. Among the highlights of the CIT:
If  making  estimated  payments  by  Electronic  Funds  Transfer 
(EFT),  the  associated  vouchers  are  not  required  to  be              The  CIT  applies  to  all  insurance  companies  unless  the 
submitted.                                                                 insurance company is able to and does make the MBT election.
Amended Returns                                                            Taxpayers may be required to file quarterly estimated payments 
A  return  cannot  be  amended  to  revoke  a  valid  election  to         as  well  as  an  annual  return.  Annual  payments  will  still  be 
remain  taxable  under  the  MBT.  To  amend  a  current  or  prior        due  on  the  prescribed  date  of  the  annual  return.  Estimated 
year annual return, complete the Form 4588 that is applicable              payments  will  still  be  due  on  the  prescribed  due  dates  for 
for  that  year,  check  the  box  in  the  upper-right  corner  of  the   quarterly estimated returns.
return,  and  attach  a  separate  sheet  explaining  the  reason  for     IMPORTANT NOTE: Public Act 222 of 2018 amended MCL 
the  changes.  Include  an  amended  federal  return  or  a  signed        206.635,  which  levied  a  tax  on  insurance  companies  equal 
and  dated  Internal  Revenue  Service  (IRS)  audit  document.            to 1.25% of gross direct premiums written on risk located or 
Include  all  schedules  filed  with  the  original  return,  even  if     residing in Michigan. Beginning Jan. 1, 2019, for CIT filers, 
not amending that schedule. Enter the figures on the amended               gross direct premiums attributable to qualified health insurance 
return as they should be. Do not include a copy of the original            premiums are taxed at a rate that may change annual. For tax 
return with your amended return.                                           year 2021, that rate is 0.4835%. The remaining portion of the 
                                                                           tax base is still taxed at 1.25%. To calculate CIT tax liability 
Accelerated Credits
                                                                           for  the  purpose  of  completing  the  “Schedule  of  Corporate 
A  taxpayer  with  a  certificated  credit  under  section  435            Income  Tax  Liability  for  an  MBT  Insurance  Filer”  (Form 
(Historic) or 437 (Brownfield) of the Michigan Business Tax                4974) the taxpayer must complete a worksheet included in the 
Act (MBTA), or any unused carryforward of such certificated                instructions for Form 4974.
credit  that  may  be  claimed  in  a  tax  year  ending  after 
                                                                           Insurance  companies  may  claim  the  Workers’  Disability 
December 31, 2011, may elect to pay the tax imposed by the 
                                                                           Supplemental  Benefit  (WDSB)  Credit  and  certain  insurance 
MBTA  in  the  tax  year  in  which  that  certificated  credit  may 
                                                                           specific credits under the CIT, if eligible.
be claimed in lieu of the CIT. If a person with a certificated 
credit under section 435 or 437 that elects to pay the MBT is a            An entity that has received, has been approved to receive, or 
member of a Unitary Business Group (UBG), the Designated                   has been assigned certain certificated tax credits under MBT 
Member of the UBG, and not the member, shall file a UBG                    may elect to continue to file and pay under the MBT in lieu of 
return and pay the tax, if any, under the MBTA and claim that              the  CIT.  This  election  must  be  made  with  the  annual  return 
certificated credit.                                                       filed  for  the  first  tax  period  beginning  after  2011  for  most 
                                                                           certificated credits.  The election is also made if a taxpayer files 
For  a  tax  year  beginning  after  December  31,  2011,  if  a 
                                                                           a Form 4889, Claim for Accelerated Credit.
certificate of completion, assignment certificate, or component 
completion certificate is issued under section 437 to a taxpayer, 
or  if  a  certificate  of  completed  rehabilitation,  assignment 

                                                                                                                                       1

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2021 General Information for Insurance Companies
Standard Taxpayers and Financial Institutions: See the Michigan Business Tax (MBT) Instruction Booklet for Standard Taxpayers
(Form 4600) or the MBT Instruction Booklet for Financial Institutions (Form 4599) at www.michigan.gov/taxes.
This booklet is intended as a guide to help complete the MBT • MEGA Photovoltaic Technology Credit, as assignee only
return. It does not take the place of the law. (Form 4574)
Who Files an Insurance Return? Using This Booklet
An insurance company is defined to mean an authorized This MBT booklet includes forms and instructions for all
insurer as defined in sections 106 and 108 of the insurance insurance filers. Read the General Information first. It is
code of 1956, 1956 PA 218, MCL 500.106 and 500.108. Public recommended that taxpayers and tax preparers also briefly
Act 276 of 2016 amended the insurance code effective review the instructions for all forms listed below. There
July 1, 2016, which now includes a health maintenance are both nonrefundable and refundable credits available for
organization (HMO) as an “insurer.” If an HMO is an insurance companies to help reduce the initial calculation of
“authorized” “insurer” under the insurance code, is not tax. This includes a limited allowance for Single Business Tax
otherwise exempt from tax, and has made a valid MBT (SBT) credit carryforwards.
election, that HMO is required to file an MBT insurance The Michigan Association and Facilities Credit and the
return. In the case that an HMO would file as an MBT Michigan Examination Fees Credit are claimed on Form 4588.
standard taxpayer for a federal tax year that straddles PA 276’s All remaining credits are claimed on the MBT Miscellaneous
effective date, two short-year returns (one short-year standard Credits for Insurance Companies (Form 4596). Some credits
return and one insurance return) will be required for that year. are calculated on additional forms, as indicated below.
Only those taxpayers that have been approved to receive, have Forms listed below are available on the Web at www.michigan.
received, or have been assigned a certificated credit that was gov/taxes.
awarded but not yet fully claimed or paid prior to January 1,
2012, may elect to be MBT taxpayers. For most certificated Nonrefundable Credits:
credits, the election must be made with the taxpayer’s first • SBT Credit Carryforwards (calculated on the Single
tax year ending after December 31, 2011. The election is Business Tax Credit Carryforwards (Form 4569)).
irrevocable once the return is submitted to the Michigan • Compensation Credit (calculated on Form 4596).
Department of Treasury (Treasury). If a taxpayer files an MBT • Renaissance Zone Credit (calculated on the MBT
return, the taxpayer makes the election to file and pay under the Renaissance Zone Credit Schedule (Form 4595)).
MBT until the certificated credit and any carryforward of that
credit are exhausted. • Brownfield Redevelopment Credit (calculated on the MBT
Election of Refund or Carryforward of Credits (Form 4584)).
All insurance companies that hold a certificated credit or • Historic Preservation Credit (calculated on the Michigan
agreement for certificated credit and wish to claim that credit Historic Preservation Tax Credit (Form 3581)).
must file the Insurance Company Annual Return for Michigan
Business and Retaliatory Taxes (Form 4588). • Film Infrastructure Credit (as assignee only; Form 4596).
All insurers, domestic and foreign, must submit copies of Refundable Credits:
Schedule T and the Michigan Business Page when filing this • Michigan Economic Growth Authority (MEGA)
return. Employment Tax Credit (claimed on Form 4596).
• Workers’ Disability Supplemental Benefit (WDSB) Credit
What is a Certificated Credit
(claimed on Form 4596).
Certificated credits are defined at MCL 208.1107. The
• Historic Preservation Credit (calculated on Form 3581).
certificated credits are either nonrefundable or refundable
credits. Below is a list of the certificated credits potentially • MEGA Photovoltaic Technology Credit (as assignee only;
available to insurance companies, and the respective form used Form 4596).
for their calculation. • Brownfield Redevelopment Credit (calculated on Form 4584).
Nonrefundable Certificated Credits: • Film Production Credit (as assignee only; Form 4596).
• Renaissance Zone Credit (Forms 4595 and 4573) Overview of MBT for Insurance Companies
• Historic Preservation Credit (Forms 4584 and 4573) MBT imposes a tax on insurance companies equal to 1.25
• Brownfield Redevelopment Credit (Forms 4584 and 4573) percent of gross direct premiums written on property or risk
• Film Infrastructure Credit, as assignee only (Form 4573) located in Michigan. There is no filing threshold for insurance
companies.
Refundable Certificated Credits:
Direct premiums do not include:
• Historic Preservation Credit (Form 4573)
• Brownfield Redevelopment Credit (Forms 4584 and 4573) • Premiums on policies not taken.
• MEGA Employment Tax Credit (Form 4574) • Returned premiums on canceled policies.
• Film Production Credit, as assignee only (Form 4574) • Receipts from the sale of annuities.

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                                                                       January 15 of the following year. Fiscal year taxpayers should 
• Receipts on reinsurance premiums if the tax had been paid 
                                                                       make returns and payments by the appropriate due date which 
  on the original premiums.
                                                                       is fifteen days after the end of each fiscal quarter. The sum of 
• The  first  $190,000,000  of  disability  insurance  premiums 
                                                                       estimated  payments  for  each  quarter  must  always  reasonably 
  written  in  Michigan  other  than  credit  insurance  and 
                                                                       approximate the liability for the quarter.
  disability  income  insurance  premiums.  This  exemption  is 
  reduced  by  two  dollars  for  every  dollar  that  an  insurance   NOTE: Your  debit  transaction  will  be  ineligible  for  EFT  if 
  company’s gross direct premiums everywhere (both within              the  bank  account  used  for  the  electronic  debit  is  funded  or 
  and outside of Michigan) exceed $280,000,000.                        otherwise associated with a foreign account to the extent that 
                                                                       the  payment  transaction  would  qualify  as  an  International 
An  insurance  company  is  subject  to  tax  as  calculated  under 
                                                                       ACH Transaction (IAT) under NACHA Rules. Contact your 
MBT  or  the  retaliatory  tax  under  Michigan  Compiled  Law 
                                                                       financial  institution  for  questions  about  the  status  of  your 
(MCL) 500.476a, whichever is greater. The tax imposed under 
                                                                       account.  Contact  the  Michigan  Department  of  Treasury’s 
Chapter 2A of the MBT Act is in lieu of all other privilege and 
                                                                       (Treasury)  EFT  Unit  at  517-636-6925  for  alternate  payment 
franchise fees or taxes, except for real and personal property 
                                                                       methods.
taxes and sales and use taxes.
                                                                       The estimated payment made with each quarterly return must 
Required CIT Comparison                                                be computed on the actual CIT for the quarter, or 25 percent of 
MBT  liability  is  calculated  as  the  higher  of  MBT  or           the estimated total liability if paying a CIT liability.
hypothetical CIT liability. A taxpayer must pay the higher of 
                                                                       To avoid interest and penalty charges, estimated payments must 
the two or take the lesser refund.
                                                                       equal at least 85 percent of the total liability for the tax year 
A  taxpayer  calculates  the  premiums  tax  of  the  MBT  and         and  the  amount  of  each  estimated  payment  must  reasonably 
applies all credits, including certificated credits, deductions,       approximate  the  tax  liability  for  that  quarter.  If  the  prior 
and  exemptions  available  under  the  MBT.  Then,  as  if  they      year’s  tax  under  the  MBT  Act  is  $20,000  or  less,  estimated 
were  subject  to  the  CIT,  taxpayers  calculate  the  premiums      tax may be based on the prior year’s total tax liability paid in 
tax  under  the  CIT  and  apply  deductions  available  under  the    four  equal  installments.  (“Four  equal  installments”  describes 
CIT. The hypothetical CIT liability is then reduced (not below         the  minimum  pace  of  payments  that  will  satisfy  this  safe 
zero) by the amount of certificated nonrefundable credit used          harbor.)  If  the  prior  year’s  tax  liability  was  reported  for  a 
to  offset  the  MBT  liability.  The  hypothetical  CIT  liability    period  less  than  12  months,  this  amount  must  be  annualized 
offset  by  certificated  nonrefundable  MBT  credits  is  further     for  purposes  of  both  the  $20,000  ceiling  and  calculating  the 
reduced by the total amount of certificated refundable credits         quarterly payments due under this method. Payments at a more 
claimed  under  the  MBT  liability  calculation,  resulting  in       accelerated pace also will qualify. If the year’s tax liability is 
the  taxpayers’  final  hypothetical  CIT  liability.  Taxpayers’      $800 or less, estimates are not required.
final  MBT  liability  consists  of  the  higher  of  the  calculated 
                                                                       NOTE:  For  those  continuing  to  file  MBT,  reliance  on  the 
MBT  and  hypothetical  CIT  liabilities.  If  both  MBT  and 
                                                                       tax liability of the prior year as a means to avoid interest and 
hypothetical  CIT  liabilities  result  in  tax  refunds  (negative 
                                                                       penalty charges is only allowed if you had business activity in 
liability), taxpayers are entitled to the lower refund amount.
                                                                       Michigan in that prior year. A return must be filed to establish 
Specific  forms  are  provided  to  perform  the  MBT  to  CIT         the tax liability for that prior year, even if gross receipts in the 
comparison  and  determine  the  tax  liability  or  refund.           prior year were less than $350,000. In addition, if your business 
Michigan Schedule of Corporate Income Tax Liability for                was  not  in  existence  in  the  preceding  year,  no  safe  harbor 
a Michigan Business  Tax Filer  (Form  4946)  is  used  for            exists.  In  such  a  case,  estimates  must  be  based  on  the  MBT 
the  standard  taxpayer  comparison. Michigan Schedule of              liability for the current year. For those filing CIT, there is no 
Corporate  Income  Tax  Liability  for a  Michigan  Business           safe harbor in this first year of CIT filing. The estimates must 
Tax Insurance  Filer  (Form  4974)  is  used  for  the  insurance      equal at least 85 percent of the total liability as stated above.
company’s  comparison. Michigan  Schedule  of  Corporate 
                                                                       Amending Estimates
Income Tax Liability for a Michigan Business  Tax Financial 
Filer  (Form  4975)  is  used  for  the  financial  institution’s      If,  after  making  payments,  the  estimated  tax  is  substantially 
comparison.                                                            different  than  originally  estimated,  recompute  the  tax  and 
                                                                       adjust the payment in the next quarter.
Filing MBT/CIT Quarterly Tax Estimates
                                                                       Electronic Filing of MBT Returns
If  estimated  liability  for  the  year  is  reasonably  expected  to 
exceed $800, a taxpayer must file estimated returns. A taxpayer        Michigan  has  an  enforced  MBT  e-file  mandate.  Software 
may  remit  quarterly  estimated  payments  by  check  with  a         developers  producing  MBT  tax  preparation  software  and 
Corporate Income Tax Quarterly Return (Form 4913) or may               computer-generated  forms  must  support  e-file  for  all  eligible 
remit  monthly  or  quarterly  estimated  payments  electronically     Michigan forms that are included in their software package. All 
by Electronic Funds Transfer (EFT). When payments are made             eligible MBT returns prepared using tax preparation software 
by EFT, Form 4913 is not required.                                     or computer-generated forms must be e-filed.
                                                                       Treasury  will  be  enforcing  the  MBT  e-file  mandate.  The 
Estimated  returns  and  payments  for  calendar  year  taxpayers 
                                                                       enforcement includes not processing computer-generated paper 
are  due  to  Treasury  by  April  15,  July  15,  October  15,  and 

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returns that are eligible to be e-filed. A notice will be mailed to • Leave lines/boxes blank if they do not apply or if the
the taxpayer, indicating that the taxpayer’s return was not filed amount is zero, unless otherwise instructed.
in the proper form and content and must be e-filed. Payment • Do not enter data in boxes filled with Xs.
received with a paper return will be processed and credited to
the taxpayer’s account even when the return is not processed. • Do not write extra numbers, symbols, or notes on the
return, such as cents, dashes, decimal points (excluding
Treasury will continue to accept certain Portable Document percentages), or dollar signs unless otherwise instructed.
Format (PDF) attachments with MBT e-filed returns. A current Enclose any explanations on a separate sheet unless
list of defined attachments is available in the “Michigan Tax instructed to write explanations on the return.
Preparer Handbook for Electronic Filing Programs,” which
is available on the Treasury Web site at www.MIfastfile.org • Date format, unless otherwise specified, should be in the
by clicking on “Tax Professionals” and then “Tax Preparer.” following format: MM-DD-YYYY. Use dashes (-) rather
Look for the handbook for the applicable tax year. Follow your than slashes (/).
software instructions for submitting attachments with an e-filed • Enter phone numbers using dashes (e.g., 517-555-5555); do
return. not use parentheses.
If the MBT return includes supporting documentation or • Stay within the lines when entering information in boxes.
attachments that are not on the predefined list of attachments, the • Report losses and negative amounts with a negative sign
return can still be e-filed. Follow your software instructions for in front of the number (do not use parentheses). For example,
including additional attachments. The tax preparer or taxpayer a loss in the amount of $22,459 should be reported as
should retain file copies of all documentation or attachments. -22,459.
For more information and program updates, including • Percentages should be carried out four digits to the
exclusions from e-file, visit the e-file Web site at right of the decimal point. Do not round percentages. For
www.MIfastfile.org. example, 24.154266 percent becomes 24.1542 percent.
The taxpayer may be required to e-file its federal return. Visit When converting a percentage to a decimal number, carry
the Internal Revenue Service (IRS) Web site at www.irs.gov numbers out six digits to the right of the decimal point. For
for more information on federal e-file requirements and the IRS example, 24.154266 percent becomes 0.241542.
Federal/State Modernized e-File (MeF) program. • Report all amounts in whole dollars. Round down
Complete Federal Tax Forms First amounts of 49 cents or less. Round up amounts of 50 cents
or more. If cents are entered on the form, they will be
Before preparing MBT returns, complete all federal tax forms.
treated as whole dollar amounts.
These forms may include:
• Fiduciaries — U.S. Form 1041, 1065, and related Schedules Suggested Order of Analysis and Preparation of
C, C-EZ, D, E, K, 4797, and 8825. an Insurance Company Annual Return
• Corporations — U.S. Form 1120, 1120-S, and Schedules D, First, determine whether the taxpayer has a certificated credit.
K, 851, 940, 4562, 4797, and 8825. If the insurance company taxpayer does not have a certificated
• Limited Liability Companies (LLCs) — federal forms listed credit, it is subject to the CIT.
above, depending on how federal returns have been filed. Complete Form 4588, lines 1 through 23. At that point, if any
Reference these federal forms to complete Form 4588. miscellaneous credits will be claimed, begin with Form 4596,
which serves several important functions:
Copies of certain pages from these federal forms must also
• Acts as a checklist for all miscellaneous credits for
be attached to the annual return filed. See the instructions for
insurance companies
Form 4588 for further details.
• Calculates refundable credits
Completing Michigan Forms • Identifies the order in which nonrefundable credits must be
Treasury captures the information from paper MBT returns claimed
using an Intelligent Character Recognition process. If • Identifies the form on which each nonrefundable credit is
completing a paper return, avoid unnecessary delays caused calculated
by manual processing by following the guidelines below
• Tracks tax liability as it is reduced by each credit in proper
so the return is processed quickly and accurately.
order
• Use black or blue ink. Do not use pencil, red ink, or felt tip • Identifies (where applicable) the point at which tax liability
pens. Do not highlight information. reaches zero and no further nonrefundable credits may be
• Print using capital letters (UPPER CASE). Capital letters claimed in the current filing period.
are easier to recognize. • Complete Form 4596 according to its instructions. For each
• Print numbers like this: 012345678. Do not put a slash applicable credit, calculate the credit as identified on the
through the zero ( ) or seven ( 7). appropriate form and bring the result back to the appropriate
line on Form 4596.
• Fill check boxes with an [X]. Do not use a check mark [a].
After total nonrefundable credits amount is determined on
Form 4596, line 28, carry the figure to Form 4588, line 24. Total

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refundable credits amount calculated on Form 4596, line 5, is            Insurance  companies  are  not  specifically  excluded  from  the 
carried to Form 4588, line 52.                                           statutory definition of a UBG, and thus may be members of a 
                                                                         UBG.  However,  the  tax  on  authorized  insurance  companies 
Insurance  companies  that  are  foreign  or  alien  insurers  must 
                                                                         is  equal  to  1.25  percent  of  gross  direct  premiums  written  on 
calculate a retaliatory tax on Form 4588, lines 30 through 46. 
                                                                         property or risk located or residing in Michigan. There is no 
The retaliatory tax requires a foreign insurer to pay the same 
                                                                         traditional  apportionment  for  insurance  companies.  Thus, 
type of obligation that a similar Michigan insurer is required to 
                                                                         even  when  an  authorized  insurance  company  is  unitary  with 
pay in the company’s state of domicile. Domestic insurers do 
                                                                         another authorized insurance company, this will have no effect 
not calculate a retaliatory tax.
                                                                         in  calculating  the  tax.  As  a  result,  a  combined  return  is  not 
Further General Guidance                                                 required and each insurance company member of a UBG will 
                                                                         file separately on Form 4588.
For purposes of MBT, person means an individual, firm, bank, 
financial  institution,  insurance  company,  limited  partnership,      General Information About UBGs
limited  liability  partnership,  copartnership,  partnership,  joint    Unitary  Business  Group  means  a  group  of  United  States 
venture, association, corporation, S corporation, LLC, receiver,         persons, other than a foreign operating entity, that satisfies the 
estate, trust, or any other group or combination of groups acting        following criteria:
as a unit.                                                               One  of  the  persons  owns  or  controls,  directly  or  indirectly, 
A taxpayer includes a single person or a UBG liable for tax,             more  than  50  percent  of  the  ownership  interest  with  voting 
interest, or penalty. A UBG must file a combined MBT return              rights (or rights comparable to voting rights) of the other United 
(addressed in the “UBGs and Combined Filing” section of this             States persons; AND
General Information). 
                                                                         The UBG has operations that result in a flow of value between 
Limited Liability Company.  An  LLC  is  classified  for  MBT            persons  included  in  the  UBG  or  has  operations  that  are 
purposes  according  to  its  federal  tax  classification.  The         integrated  with,  are  dependent  upon,  or  contribute  to  each 
following  terms,  whenever  used  in  MBT  forms,  instructions,        other. Flow of value is determined by reviewing the totality of 
and statute, include LLCs as indicated:                                  facts and circumstances of business activities and operations.
• S  Corporation  includes  an  LLC  federally  taxed  as  an  S         United States person is defined in Internal Revenue Code (IRC) 
  Corporation, and a member of this LLC is a shareholder.                § 7701(a)(30). A foreign operating entity is defined by statute in 
• C  Corporation  includes  an  LLC  federally  taxed  as  a  C          MCL 208.1109(5).
  Corporation, and a member of this LLC is a shareholder. A              For more information on the control and relationship tests for 
  member or other person performing duties similar to those              UBGs,  see  Revenue  Administrative  Bulletin  (RAB)  2010-1, 
  of an officer in a true corporation is an officer in this LLC.         MBT—Unitary Business Group Control Test, and RAB 2010-
                                                                         2,  MBT—Unitary  Business  Group  Relationship  Tests,  on  the 
NOTE: In this booklet, the term “corporation,” used without a 
                                                                         Treasury  Web  site  at www.michigan.gov/treasury/,  under 
C or S, generally refers to both types.
                                                                         “Reports and Legal Resources.”
Disregarded Entities: Public  Act  305  was  enacted  into               Exemption Guidelines
law  on  December  27,  2011,  to  add  Michigan  Compiled  Law 
                                                                         The tax imposed and levied under the MBT Act does not apply 
208.1512  to  the  MBT.  This  section  provides  that  a  person 
                                                                         to an insurance company authorized under Chapter 46 or 47 of 
that  is  classified  as  a  disregarded  entity  for  federal  purposes 
                                                                         the Insurance Code of 1956, PA 218 of 1956, MCL 500.4601 to 
is  classified  as  a  disregarded  entity  for  MBT  purposes.  This 
                                                                         500.4673, and MCL 500.4701 to 500.4747.
means  that  a  disregarded  entity  for  federal  tax  purposes, 
including  a  single  member  LLC  or  Q-Sub,  must  file  as  if  it    Filing the Correct Form
were a sole proprietorship if  it is owned by an individual, or a        A different primary return and instruction booklet are required 
branch or division if the branch or division is owned by another         for  standard  taxpayers  (Form  4567)  and  financial  institutions 
business entity.                                                         (Form 4590).
Unitary Business Groups (UBGs)                                           Due Dates of Annual Returns
and Combined Filing                                                      The tax year of an insurance company is the calendar year. An 
Special UBG Instructions for Insurance Companies                         insurance  company  must  file  the  annual  return  on  or  before 
By definition a UBG (as defined below) can include insurance             March  1  after  the  end  of  the  tax  year.  The  extension  that  is 
companies,  standard  taxpayers,  and  financial  institutions.          available  to  the  standard  taxpayer  under  MCL  208.1505(4)  is 
However, in some cases not all members of the UBG will be                not available to insurance companies.
included  on  the  same  return.  All  standard  taxpayer  members 
                                                                         Amending a Return
in a UBG (except those owned by and unitary with a financial 
institution)  file  a  single  combined return  on  the MBT Annual       A  taxpayer  may  not  amend  to  revoke  the  election  to  remain 
Return (Form 4567). Financial institution members of a UBG               taxable under the MBT.  Once the taxpayer makes a valid election 
(and  any  standard  taxpayer  owned  by  and  unitary  with  a          to  claim  a  certificated  credit,  the  taxpayer  must  remain  in  the 
financial institution in the group) file a combined return on the        MBT  until  the  certificated  credit  and  any  carryforward  of  that 
MBT Annual Return for Financial Institutions (Form 4590).                credit  are  exhausted.  Most  certificated  credits  must  be  claimed 
                                                                         for the taxpayer’s first tax year ending after December 31, 2011.

                                                                                                                                          5

- 8 -

To amend a current or prior year annual return, complete Form           Print  the  name  of  the  authorized  signer  and  preparer  in  the 
4588 that is applicable for that year and check the box in the          appropriate area on the return.
upper-right  corner  of  the  return,  and  attach  a  separate  sheet 
                                                                        Assemble  the  returns  and  attachments  (in  sequence  order) 
explaining  the  reason  for  the  changes.  Include  all  schedules 
                                                                        and  staple  in  the  upper-left  corner.  (Do  not  staple  a  check  to 
filed  with  the  original  return,  even  if  not  amending  that 
                                                                        the  return.)  In  an  e-filed  return  the  preparation  software  will 
schedule.  Enter  the  figures  on  the  amended  return  as  they 
                                                                        assemble the forms and PDF attachments in the proper order 
should  be.  Do  not  include  a  copy  of  the  original  return  with 
                                                                        automatically.
your amended return.
                                                                        IMPORTANT REMINDER:  Failure  to  include  all  the 
Current and past year forms are available on Treasury’s Web 
                                                                        required forms and attachments will delay processing and may 
site at www.michigan.gov/treasuryforms.
                                                                        result in reduced or denied refund or credit forward or a bill for 
To amend a return to claim a refund, file within four years of the      tax due.
original return’s due date. Interest will be paid beginning 45 days 
after the claim is filed or the due date, whichever is later.           Signing an e-file return
If amending a return to report a deficiency, penalty and interest       As  with  any  tax  return  submitted  to  Treasury  on  paper,  an 
may  apply  from  the  due  date  of  the  original  return.  If  any   electronic  tax  return  must  be  signed  by  an  authorized  tax 
changes are made to a federal income tax return that affect an          return  signer,  the  Electronic  Return  Originator  (ERO),  if 
MBT tax base, filing an amended return is required. To avoid            applicable, and the paid tax preparer, if applicable. NOTE: If 
penalty, file the amended return within 120 days after the final        the return meets one of the exceptions to the e-file mandate and 
determination by the IRS.                                               is being filed on paper, it must be manually signed and dated by 
                                                                        the taxpayer or the taxpayer’s authorized agent.
Computing Penalty and Interest                                          The MBT Fed/State e-file signature process is as follows:
Annual  and  estimated  returns  filed  late  or  without  sufficient 
payment of the tax due are subject to a penalty of 5 percent of         Fed/State Returns: Michigan will accept the federal signature 
                                                                        method.  Michigan  does  not  require  any  additional  signature 
the tax due, for the first two months. Penalty increases by an 
                                                                        documentation. 
additional  5  percent  per  month,  or  fraction  thereof,  after  the 
second month, to a maximum of 25 percent.                               State Stand Alone Returns:     State Stand Alone returns must 
                                                                        be  signed  using  Form  MI-8879  (also  called  the  Michigan 
Compute  penalty  and  interest  for  underpaid  estimates  using 
                                                                        e-file  Authorization  for  Business  Taxes  MI-8879,  Form 
the MBT Penalty and Interest Computation for Underpaid 
                                                                        4763). Returns are signed by entering the taxpayer PIN in the 
Estimated Tax (Form 4582). If a taxpayer prefers not to file this 
                                                                        software  after  reading  the  perjury  statement  displayed  in  the 
form, Treasury will compute the penalty and interest and send 
                                                                        software. The taxpayer PIN will be selected by the taxpayer, or 
a bill.
                                                                        the taxpayer may authorize his or her tax preparer to select the 
The following chart shows the interest rate that applies to each        taxpayer PIN.
filing period. A new interest rate is set at 1 percent above the 
                                                                        Form MI-8879 will be printed and contain the taxpayer PIN. 
adjusted prime rate for each six-month period.
                                                                        The tax preparer will retain Form MI-8879 in his or her records 
 Beginning Date           Rate                Daily Rate                as part of the taxpayer’s printed return. MBT State Stand Alone 
 January 1, 2021          4.25%               0.0001164                 e-filings submitted without a taxpayer PIN will be rejected by 
                                                                        Treasury. Do not mail Form MI-8879 to Treasury and do not 
    July 1, 2021          4.25%               0.0001164
                                                                        include Form MI-8879 as an attachment with the e-file return. 
 January 1, 2022          4.25%               0.0001164
                                                                        Mailing Addresses
For  a  complete  list  of  interest  rates,  see  the  Revenue         Mail the annual return and all necessary schedules to:
Administrative  Bulletins  on  Treasury’s  Web  site  at 
www.michigan.gov/treasury/,  under  “Reports  and  Legal                With payment:
Resources.”                                                             Michigan Department of Treasury
                                                                        PO Box 30113
Signing the Return                                                      Lansing MI 48909
All  returns  must  be  signed  and  dated  by  the  taxpayer  or  the  Without payment:
taxpayer’s  authorized  agent.  This  may  be  the  owner,  partner, 
                                                                        Michigan Department of Treasury
corporate  officer,  or  association  member.  The  corporate 
                                                                        PO Box 30783
officer may be the president, vice president, treasurer, assistant 
treasurer,  chief  accounting  officer,  or  any  other  corporate      Lansing MI 48909
officer (such as tax officer) authorized to sign the corporation’s      Mail quarterly estimate payments (Form 4913) to:
tax return.                                                             Michigan Department of Treasury
If  someone  other  than  the  above  prepared  the  return,  the       PO Box 30774
preparer must give his or her business address and telephone            Lansing MI 48909-8274
number.

6

- 9 -

Courier delivery service mail should be sent to:
Michigan Department of Treasury
7285 Parsons Dr.
Dimondale MI 48821
Make  all  checks  payable  to  “State  of  Michigan.”  Print 
taxpayer’s FEIN or TR Number, the tax year, and “MBT” on 
the front of the check. Do not staple the check to the return.
Correspondence
An address change or business discontinuance can be reported online 
by  using  Michigan  Treasury  Online  (MTO),  Business  Tax  Services. 
See www.michigan.gov/mtobusiness for  information.  In  the 
alternative, Notice of Change or Discontinuance (Form 163), can be 
found online at www.michigan.gov/treasuryforms.
Mail correspondence to:
Business Tax Division, MBT Unit
Michigan Department of Treasury
PO Box 30059
Lansing MI 48909
To Request Forms
Internet
Current and past year forms are available on Treasury’s Web 
site at www.michigan.gov/treasuryforms.
TTY
Assistance is available using TTY through the Michigan Relay 
Service by calling 711.

                                                                        7

- 10 -

- 11 -

Michigan Department of Treasury
4588 (Rev. 04-21), Page 1 of 2

2021 Insurance Company Annual Return for                                                                                                                                     Check if this is an 
                                                                                                                                                                             amended return.
Michigan Business and Retaliatory Taxes                                                                                                                                      See instructions.
Issued under authority of Public Act 36 of 2007.

1.  Taxpayer Name                                                                                                          2. Federal Employer Identification Number (FEIN) or TR Number

Address (Number, Street)                                               Check if  
                                                                       new address.                                        3. Check if Foreign Insurer
                                                                       (See instructions)
City                                            State ZIP/Postal Code  Country Code 4. State of Incorporation (use 2 letter abbreviation)

DIRECT PREMIUMS WRITTEN IN MICHIGAN
 5. Gross direct premiums written in Michigan.............................................................................................................               5.                      00
 6. Premiums on policies not taken.......................................................................             6.                  00
 7. Returned premiums on canceled policies........................................................                    7.                  00
 8. Receipts on sales of annuities .........................................................................          8.                  00
 9. Receipts on reinsurance assumed ..................................................................                9.                  00
 10. Add lines 6 through 9.............................................................................................................................................. 10.                     00
 11. Direct Premiums Written in Michigan.  Subtract line 10 from line 5. If less than zero, enter zero .....................                                             11.                     00

DISABILITY INSURANCE EXEMPTION
 12. Disability insurance premiums written in Michigan, not including credit or disability income insurance,  
     OR $190,000,000, whichever is less ....................................................................................................................             12.                     00
 13. Gross direct premiums from all lines of insurance carrier services
     received everywhere ....................................................................................         13.                 00
 14. Phase out ...................................................................................................... 14.     280,000,000 00
 15. Subtract line 14 from line 13.  If less than zero, enter zero ...........................                        15.                 00
 16. Exemption reduction. Multiply line 15 by 2 .............................................................................................................            16.                     00
 17. Subtract line 16 from line 12. If less than zero, enter zero .....................................................................................                  17.                     00
 18. Adjusted Tax Base. Subtract line 17 from line 11 ...................................................................................................                18.                     00
 19. Michigan Business Tax Before Credits. Multiply line 18 by 1.25% (0.0125) ......................................................                                     19.                     00

CREDITS
 20. Enter amounts paid from 1/1/2020 to 12/31/2020 to each of the following
     a. Michigan Workers’ Compensation Placement Facility ..............................                              20a.                00
     b. Michigan Basic Property Insurance Association .......................................                         20b.                00
     c. Michigan Automobile Insurance Placement Facility .................................                            20c.                00
     d. Property and Casualty Guaranty Association ...........................................                        20d.                00
     e. Michigan Life and Health Insurance Guaranty Association ......................                                20e.                00
 21. Add lines 20a through 20e......................................................................................................................................     21.                     00
 22. a. Michigan Examination Fees .....................................................................               22a.                00
     b. Credit. Multiply line 22a by 50% (0.50) .............................................................................................................. 22b.                              00
 23. Tax Before Miscellaneous Nonrefundable Credits. Subtract lines 21 and 22b from line 19 .............................                                                23.                     00
 24. Miscellaneous Nonrefundable Credits from Form 4596, line 28.............................................................................                            24.                     00
 25. Michigan Business Tax After Nonrefundable Credits. Subtract line 24 from line 23. If less than zero, enter zero ..                                                  25.                     00
 26. Recapture of Certain Business Tax Credits and Deductions from Form 4587, line 13 ...........................................                                        26.                     00
 27. Total Michigan Business Tax.  Add lines 25 and 26 ............................................................................................                      27.                     00
 28. Corporate Income Tax Adjustment from Form 4974, line 20 ..................................................................................                          28.                     00
 29. Tax Liability. Add lines 27 and 28 ..........................................................................................................................       29.                     00

                                                      Return is due March 1, 2022.
WITHOUT PAYMENT: Mail return to:                WITH PAYMENT: Pay amount on line 58 and mail check and return to:
 Michigan Department of Treasury                Michigan Department of Treasury                                            Make check payable to “State of Michigan.” Print taxpayer’s 
 PO Box 30783                                   PO Box 30113                                                               FEIN or TR Number, the tax year, and “MBT” on the front of 
 Lansing MI 48909                               Lansing MI 48909                                                           the check. Do not staple the check to the return.

+ 0000 2021 83 01 27 2                                                                                                                                                   Continue and sign on Page 2

- 12 -

2021 Form 4588, Page 2 of 2                                                                                     FEIN or TR Number
Foreign and alien insurers complete lines 30 through 46. Domestic insurers, go to line 47. Use column A to report burdens that would be imposed by the taxpayer’s state 
of incorporation on a hypothetical Michigan company doing the same business in that state. Use column B to report actual burdens imposed by Michigan on the taxpayer.
TAXES                                                                                                           A — State of Incorporation                                B — Michigan
 30. State of incorporation tax.......................................................................      30.                                                       X  X  X  X  X  X  X  X
 31. Tax Liability from line 29 ........................................................................    31. X  X  X  X  X  X  X  X
FEES AND ASSESSMENTS
 32.  Annual statement filing fee ....................................................................      32.                                                       X  X  X  X  X  X  X  X
 33.  Certificate of Authority renewal fee ........................................................         33.                                                       X  X  X  X  X  X  X  X
 34.  Certificate of Compliance ......................................................................      34.                                                       X  X  X  X  X  X  X  X
 35.  Certificate of Deposit .............................................................................  35.                                                       X  X  X  X  X  X  X  X
 36.  Certificate of Valuation ...........................................................................  36.                                                       X  X  X  X  X  X  X  X

 37. Other fees. Include a detailed schedule of fees ...................................                    37.
 38. Fire Marshall Tax ...................................................................................  38.                                                       X  X  X  X  X  X  X  X
 39. Second Injury Fund ...............................................................................     39.
 40. Silicosis and Dust Disease Fund ...........................................................            40.
 41. Safety Education and Training Fund .....................................................               41.
 42. Other assessments. Include a detailed schedule of assessments .......                                  42.
TOTAL
 43.  Add lines 30 through 42 ............................................................................. 43.
 44.  Accelerated and Certificated Refundable Credits (see instructions) .....                              44. X  X  X  X  X  X  X  X
 45. Total Taxes, Fees and Assessments. Subtract line 44 from line 43 .......                               45.
 46. Retaliatory Amount. Subtract line 45, column B, from column A. If less than zero, enter zero...............................                                      46.                 00
 47.  Total MBT Tax Liability. Add lines 29 and 46. Domestic insurers, enter amount from line 29 .............................                                        47.                 00
PAYMENTS, REFUNDABLE CREDITS AND TAX DUE
 48. Overpayment credited from prior MBT return .........................................................................................................             48.                 00
 49. Estimated tax payments ......................................................................................................................................... 49.                 00
 50. There is no amount to be entered on this line. Skip to line 51................................................................................                   50. X X X X X X X X 00
 51. Tax paid with request for extension ........................................................................................................................     51.                 00
 52. Refundable Credits (see instructions) ....................................................................................................................       52.                 00
 53. Total Payments. Add lines 48 through 52.  (If not amending, then skip to line 55.) ................................................                              53.                 00
      AMENDED a. Payments made with original and/or prior amended returns . 54a.                                                        00
54.   RETURN  b. Overpayments from original and/or prior amended returns .. 54b.                                                        00
      ONLY    c. Add lines 53 and 54a and subtract line 54b from the sum ... .................................................... 54c.                                                    00
 55.  TAX DUE. Subtract line 53 (or line 54c, if amending) from line 47. If less than zero, leave blank .........................                                     55.                 00
 56. Underpaid estimate penalty and interest from Form 4582, line 38. ........................................................................                        56.                 00
 57. Annual return penalty (a)            % = (b)         00                  plus interest of (c)                  00 . Total ....... 57d.                                               00
 58.  PAYMENT DUE. If line 55 is blank, go to line 59. Otherwise add lines 55, 56 and 57d .........................................                                   58.                 00
OVERPAYMENT, REFUND OR CREDIT FORWARD
 59. Overpayment. Subtract lines 47, 56 and 57d from line 53 (or line 54c, if amending). 
      If less than zero, leave blank (see instructions).....................................................................................................          59.                 00
 60.  CREDIT FORWARD. Amount on line 59 to be credited forward and used as an estimate for next MBT tax year ....                                                     60.                 00
 61.  REFUND. Amount on line 59 to be refunded..........................................................................................................              61.                 00

Taxpayer Certification.  I declare under penalty of perjury that the information in                         Preparer Certification.  I declare under penalty of perjury that this
this return and attachments is true and complete to the best of my knowledge.                               return is based on all information of which I have any knowledge.
                                                                                                            Preparer’s PTIN, FEIN or SSN
      By checking this box, I authorize Treasury to discuss my return with my preparer.
Authorized Signature for Tax Matters
                                                                                                            Preparer’s Business Name (print or type)

Authorized Signer’s Name (print or type)          Date                                                      Preparer’s Business Address and Telephone Number (print or type) 

Title                                     Telephone Number

+ 0000 2021 83 02 27 0

- 13 -

Instructions for Form 4588
Insurance Company Annual Return for Michigan Business and Retaliatory Taxes
Do not enter data in boxes filled with Xs.
Purpose
Line 1: Enter the complete address and, if other than the
To calculate the tax liability and to claim credits for insurance
United States, enter the two-digit abbreviation for the country
companies for both Michigan Business and Retaliatory Taxes.
code. See the list of country codes in the Michigan Business
NOTE: Beginning January 1, 2012, only those taxpayers with Tax (MBT) Forms and Instructions for Insurance Companies
a certificated credit, which is awarded but not yet fully claimed (Form 4592).
or utilized, may elect to be Michigan Business Tax (MBT)
Any correspondence regarding the return filed and/or refund
taxpayers. If a taxpayer files an MBT return and claims a
will be sent to the address used here. Check the new address
certificated credit, the taxpayer makes the election to file
box if the address used on this line has changed from the last
and pay under the MBT until the certificated credit and any
filing. The taxpayer’s primary address in the Department of
carryforward of that credit are exhausted.
Treasury (Treasury) files, identified as the legal address and
General Instructions used for all purposes other than refund and correspondence
on a specific MBT return, will not change until the customer
MBT Liability: Beginning January 1, 2012, a taxpayer
specifically makes the change on their Michigan Treasury
calculates MBT liability as the greater of MBT liability after
Online (MTO) account. Visit
all credits, deductions, and exemptions or hypothetical CIT michigan.gov/mtobusiness for
more information.
liability minus deductions and credits available under that act
and minus certificated credits allowed under the MBT. This Line 2: Use the taxpayer’s Federal Employer Identification
calculation of liability requires a taxpayer to calculate the Number (FEIN) or the Michigan Treasury (TR) assigned
premiums tax base and apply available MBT credits, including number. Be sure to use the same account number on all forms.
certificated credits, deductions, and exemptions available
If the taxpayer does not have an FEIN or TR number,
under the MBT. Then, the taxpayer will calculate the CIT
the taxpayer must register before filing this form.
comparison on the Schedule of Corporate Income Tax Liability
Taxpayers are encouraged to register online at
for an Insurance Filer (Form 4974). A taxpayer is permitted to
reduce hypothetical CIT liability by all deductions and credits www.michigan.gov/mtobusiness. Click on the quick link “New
Business” for information on how to obtain an FEIN, which
which would be allowed under that tax as well as the amount
is required to submit a return through e-file. Taxpayers usually
of certificated credit allowed under the MBT. The amount
can obtain an FEIN from the IRS within 48 hours. Taxpayers
of certificated credit allowed under the MBT is the amount
registering with the State online usually receive an account
of nonrefundable credit needed to offset MBT liability or the
number within seven days.
entire amount of a refundable credit.
If the taxpayer’s hypothetical CIT liability would be higher Returns received without a registered account number will not
than its MBT liability, the taxpayer will add the difference to be processed until such time as a number is provided.
MBT liability on line 28 of this form (4588). This is the CIT Line 3: Check this box if the company is a foreign insurer.
adjustment. If the result of both steps of the calculation is a Alien insurers are considered foreign insurers, unless their port
negative number, the taxpayer will receive a refund of the lower of entry is Michigan, in which case the company is considered
negative; but a nonrefundable credit cannot be used to reduce domestic for the filing of this return.
liability below zero. Remaining nonrefundable certificated credit
may be carried forward to succeeding tax years. Line 4: Alien insurers, enter the two-letter postal code for the
U.S. state that is your port of entry.
Amended Returns: To amend a current or prior year annual
return, complete the Form 4588 that is applicable for that year, Line 5: Enter all gross direct premiums written on property or
check the box in the upper-right corner of the return, and attach risk located or residing in Michigan.
a separate sheet explaining the reason for the changes. Include an Line 6: Enter premiums on policies not taken to the extent
amended federal return or a signed and dated Internal Revenue these premiums were included in line 5.
Service (IRS) audit document. Include all schedules filed with
the original return, even if not amending that schedule. Enter Line 7: Enter returned premiums on canceled policies to the
the figures on the amended return as they should be. Do not extent these premiums were included in line 5.
include a copy of the original return with your amended return. Line 8: Enter receipts on sales of annuities to the extent these
A taxpayer may not amend to revoke the election to remain receipts were included in line 5.
taxable under the MBT. Once the taxpayer makes a valid election
to claim a certificated credit, the taxpayer must continue to file Line 9: Enter receipts on reinsurance premiums assumed to
the MBT until the credit and any carryforward of that credit are the extent these receipts were included in line 5, and only if tax
exhausted. was paid on the original premiums.
Line 12: Disability insurance is insurance of any person
Line-by-Line Instructions against bodily injury or death by accident, or against disability
Lines not listed are explained on the form. on account of sickness or accident including also the granting

- 14 -

of specific hospital benefits and medical, surgical and sick- Line 30: Enter the tax a Michigan company would pay
care benefits to any person, family, or group, subject to such to the taxpayer’s state of incorporation if it conducted the
limitations as may be prescribed with respect thereto. The same amounts and types of business there as the taxpayer
exclusion for disability insurance premiums does not include is conducting in Michigan. Attach a copy of the state of
credit insurance or disability income insurance premiums. incorporation’s tax form on which this pro forma tax on the
hypothetical Michigan company was calculated.
CREDITS
Line 20: Enter the amounts paid to the listed facilities Lines 32 through 42: In column A, “State of Incorporation,”
enter the amounts that would be paid by a hypothetical
or associations from January 1, 2020, to December 31,
Michigan insurance company doing the same types and
2020, including special assessments. Net the amounts paid
amounts of business in the taxpayer’s home state that the
and refunds received during 2020 for the same facility or
taxpayer is doing in Michigan.
association. If refunds received exceed the amount paid in the
year for the same facility or association, enter zero. Lines 37 and 39 through 42: In column B, “Michigan,” enter
the actual amounts paid by the taxpayer to Michigan.
Line 20c: For tax years beginning on and after January 1,
2020, amounts paid to the MAIPF that are attributable to the Line 42: Attach a detailed schedule of assessments.
assigned claims plan shall not be included in the calculation of Line 44: Enter the sum of accelerated and certificated
this credit. refundable credits:
Line 22a: Enter the amount of Michigan Examination Fees • Accelerated credits: The amount from the Request for
paid in 2018 (under Michigan Compiled Law 500.224). Accelerated Payment for the Brownfield Redevelopment
Line 24: Enter the Miscellaneous Nonrefundable Credits from Credit and the Historic Preservation Credit (Form 4889),
Michigan Business Tax Miscellaneous Credits for Insurance line 10. (If the taxpayer has filed more than one Form 4889
Companies (Form 4596), line 28. during the tax year, enter here the combined total of credits
claimed on all Forms 4889, line 10);
Retaliatory Instructions • Certificated Refundable credits: The sum of the amounts
For foreign and alien insurers only; domestic insurers skip reported on Form 4596, lines 2, 3, and 4.
lines 30 through 46.
Line 46: Subtract line 45, column B, from line 45, column A.
Do not mail this return with the Michigan Annual Financial If less than zero, enter zero. If line 45, column B, is a negative
Statement, and do not send the annual statement filing fee number, add column A to the negative number in column B.
with this return. The taxpayer will be billed separately for the This will increase the retaliatory amount reported.
annual statement filing fee by the Department of Insurance and
Financial Services. PAYMENTS, REFUNDABLE CREDITS, AND TAX DUE
Line 49: Enter the total tax paid with the quarterly estimated
Foreign insurers must pay to Michigan the same type of
tax returns.
obligation a similar Michigan insurer is required to pay in the
company’s state of domicile. Enter all items that are required Line 51: Enter any tentative payment of estimated tax made
of a Michigan insurance company. Some taxes and obligations with a request for an extension of time to file the return.
imposed in other states may have no corresponding requirement Line 52: If claiming a credit, enter the amount from Form
in Michigan; however, this does not relieve the foreign insurer 4596, line 5.
from the obligation of computing and paying the tax.
Amended Returns Only:
Do not include the following Michigan assessments,
Line 54a: Enter payment made with the original return.
or comparable assessments in the company’s state of
incorporation, in the retaliatory calculation: Line 54b: Enter overpayment received (refund received plus
credit forward created) on the original return.
• Michigan Workers’ Compensation Placement Facility
Line 54c: Add lines 53 and 54a and subtract line 54b from
• Michigan Basic Property Insurance Association
the sum.
• Michigan Automobile Insurance Placement Facility
• Property and Casualty Guaranty Association Line 56: If penalty and interest are owed for not filing
estimated returns or for underestimating tax, complete
• Michigan Life and Health Insurance Guaranty Association
the MBT Penalty and Interest Computation for Underpaid
• Catastrophic Claims Association Estimated Tax (Form 4582) to compute penalty and interest
• Assessment under Health Insurance Claims Assessment Act due. If a taxpayer chooses not to file Form 4582, Treasury will
(HICAA). compute penalty and interest and bill for payment. Form 4582
California insurers must include Bureau of Fraudulent Claims is available on the Web at www.michigan.gov/taxes.
assessments. New York domiciled companies must file and pay Line 57: Enter the annual return penalty rate in line 57a. Add
a tentative retaliatory tax to Michigan by the annual due date, the overdue tax penalty in line 57b to the overdue tax interest
March 1, 2022. An amended Form 4588 must be filed after in line 57c. Enter total in line 57d.
the actual CT33 is filed with New York. Transfer the CT33
numbers onto the amended Form 4588 and attach a copy of the
CT33 to substantiate the taxpayer’s claim.

- 15 -

Refer to the “Computing Penalty and Interest” section in Form 4592 • MBT Renaissance Zone Credit Schedule (Form 4595)
to determine the annual return penalty rate and use the following • MBT Miscellaneous Credits for Insurance Companies
Overdue Tax Penalty and Overdue Tax Interest worksheets. (Form 4596)
• Proof of payment for any items listed in the “Michigan”
WORKSHEET – OVERDUE TAX PENALTY column for lines 39 through 42.
A. Tax due from Form 4588, line 55 ........ 00
B. Late/extension or insufficient
payment penalty percentage ................ %
C. Multiply line A by line B ..................... 00
Carry amount from line C to Form 4588, line 57b.

WORKSHEET – OVERDUE TAX INTEREST
A. Tax due from Form 4588, line 55 ........ 00
B. Applicable daily interest percentage .. %
C. Number of days return was past due ...
D. Multiply line B by line C ....................
E. Multiply line A by line D .................... 00
Carry amount from line E to Form 4588, line 57c.

Line 57c: NOTE: If the late period spans more than one
interest rate period, divide the late period into the number of
days in each of the interest rate periods identified under the
“Computing Penalty and Interest” section in Form 4592 and
apply the calculations in the Overdue Tax Interest worksheet
separately to each portion of the late period. Combine these
interest subtotals and carry the total to Form 4588, line 57c.
Line 59: If the amount of the overpayment, less any penalty
and interest due on lines 56 and 57d, is less than zero, enter the
difference (as a positive number) on line 58. If the amount is
greater than zero, enter on line 59.
NOTE: If an overpayment exists, a taxpayer must elect a
refund of all or a portion of the amount and/or designate all or
a portion of the overpayment to be used as an estimate for the
next MBT tax year. Complete lines 60 and 61 as applicable.
Line 60: If the taxpayer anticipates an MBT liability in the
filing period subsequent to this return, some or all of any
overpayment from line 59 may be credited forward to the next
tax year as an estimated payment. Enter the desired amount to
use as an estimate for the next MBT tax year.
Reminder: Taxpayers must sign and date returns. Tax
preparers must provide a Preparer Taxpayer Identification
Number (PTIN), FEIN or Social Security number (SSN), a
business name, and a business address and phone number.
Other Supporting Forms and Schedules
The following forms and their requested attachments should be
included as part of this return, as applicable:
• Michigan Historic Preservation Tax Credit (Form 3581)
• MBT Single Business Tax (SBT) Credit Carryforwards
(Form 4569)
• MBT Penalty and Interest Computation for Underpaid
Estimated Tax (Form 4582)
• MBT Election of Refund or Carryforward Credits
(Form 4584)
• MBT Schedule of Recapture of Certain Business Tax Credits
and Deductions (Form 4587)

- 16 -

- 17 -

Michigan Department of Treasury                                                                                                                                          Attachment 01
4596 (Rev. 04-21), Page 1 of 2

2021 MICHIGAN Business Tax Miscellaneous Credits for Insurance Companies
Issued under authority of Public Act 36 of 2007.
Taxpayer Name                                                                     Federal Employer Identification Number (FEIN) or TR Number

PART 1:  REFUNDABLE CREDITS

Workers’ Disability Supplemental Benefit (WDSB) Credit.  If not claiming, skip to line 2.

 1. WDSB Credit allowed by the Workers’ Compensation Agency (attach document) ...............................................                                        1.                  00

MEGA Employment Tax Credit.  If not claiming, skip to line 3.

 2. Credit amount from MEDC Annual Tax Credit Certificate (attach) ........................................................................                          2.                  00

MEGA Photovoltaic Technology Credit.  If not claiming this credit, skip to line 4.

 3. Credit amount from Assignment Certificate provided by MEDC (attach) ..............................................................                               3.                  00

Film Production Credit.  If not claiming, skip to line 5.

 4. Assigned credit amount (see instructions).............................................................................................................           4.                  00

 5.  TOTAL REFUNDABLE CREDITS.  Add lines 1 through 4. Enter total here and carry to Form 4588, line 52. .....                                                       5.                  00

PART 2:  NONREFUNDABLE CREDITS

 6. There is no amount to be entered on this line .......................................................................................................            6.  X X X X X X X X 00

Compensation Credit.  If not claiming, skip to line 14 and enter there the amount from Form 4588, line 23.

 7. Michigan Compensation .........................................................................................................................................  7.                  00

 8. Compensation Credit. Multiply line 7 by 0.37% (0.0037)........................................................................................                   8.                  00

Reduced Compensation Credit

 9. Enter amount from Form 4588, line 23 ..................................................................................................................          9.                  00

 10. WDSB Credit from line 1 above.............................................................................................................................      10.                 00

 11. Subtract line 10 from line 9.  If less than zero, enter zero .....................................................................................              11.                 00

 12. Multiply line 11 by 65% (0.65) ................................................................................................................................ 12.                 00

 13. Allowable Compensation Credit. Enter lesser of line 8 or line 12 ......................................................................                         13.                 00

 14. Tax After Compensation Credit. Subtract line 13 from line 9. If less than zero, enter zero ...................................                                  14.                 00

+ 0000 2021 97 01 27 3                                                                                                                                                   Continue on Page 2

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2021 Form 4596, Page 2 of 2 FEIN or TR Number

Renaissance Zone Credit. If not claiming, carry amount from line 14 to line 16.
If claiming, complete and include the MBT Renaissance Zone Credit Schedule (Form 4595).

15. Renaissance Zone Credit. Amount from Form 4595, line 25b ............................................................................ 15. 00

16. Tax After Renaissance Zone Credit. Subtract line 15 from line 14. If less than zero, enter zero ........................... 16. 00

Historic Preservation Credit. If not claiming, carry amount from line 16 to line 19.

17. Historic Preservation Credit from Form 4584, line 28 ......................................................................................... 17. 00

18a. Recapture of Historic Preservation Tax Credit from Form 4584, line 2 .................................................................. 18a. 00
18b. Historic Preservation Credit Net of Recapture. Subtract line 18a from line 17. If less than zero, enter as a
negative number ..................................................................................................................................................... 18b. 00

19. Tax After Historic Preservation Credit. Subtract line 17 from line 16 and add line 18a .......................................... 19. 00

Brownfield Redevelopment Credit. If not claiming, carry amount from line 19 to line 21.

20. Brownfield Redevelopment Credit from Form 4584, line 55.............................................................................. 20. 00

21. Tax After Brownfield Redevelopment Credit. Subtract line 20 from line 19. If less than zero, enter zero ............ 21. 00

Film Infrastructure Credit. If not claiming, carry amount from line 21 to line 26.

22. Assigned credit amount ......................................................................................................................................... 22. 00

23. Unused credit from previous period MBT return .................................................................................................... 23. 00

24. Total Available Credit. Add lines 22 and 23 .......................................................................................................... 24. 00

25. Film Infrastructure Credit. Enter the lesser of line 21 or 24 ............................................................................... 25. 00

26. Tax After Film Infrastructure Credit. Subtract line 25 from line 21. If less than zero, enter zero.......................... 26. 00

27. Credit carryforward. If line 24 is greater than line 21, enter the difference ....... 27. 00

28. TOTAL NONREFUNDABLE CREDITS. Add lines 13, 15, 18b, 20, and 25.
Enter total here and carry amount to Form 4588, line 24 ...................................................................................... 28. 00

+ 0000 2021 97 02 27 1

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                                            Instructions for Form 4596 
Michigan Business Tax (MBT) Miscellaneous Credits for Insurance Companies 
Purpose                                                                  new  jobs  as  defined  in  the  MEGA  Act,  and  that  removes  51 
                                                                         percent  or  more  of  those  qualified  new  jobs  from  Michigan 
To allow insurance companies to calculate certain miscellaneous          within  three  years  after  the  first  year  in  which  the  taxpayer 
credits.  There  are  strict  eligibility  requirements,  so  review     claimed a credit must pay an amount equal to the total of all 
the  descriptions  carefully  before  claiming  a  credit.  Follow  the  credits  claimed  no  later  than  12  months  after  those  qualified 
instructions on the form for each credit.                                new  jobs  are  removed  from  Michigan.  Recapture  is  reported 
                                                                         on  the MBT Schedule  of  Recapture  of  Certain  Business Tax 
Line-by-Line Instructions                                                Credits and Deductions (Form 4587).
Lines not listed are explained on the form.                              For  more  information,  call  the  Michigan  Economic 
NOTE: Beginning January 1, 2012, only those taxpayers with               Development  Corporation  (MEDC)  at  (517)  373-9808  or  visit 
a certificated credit, which is awarded but not yet fully claimed        the MEDC Web site at http://www.michiganbusiness.org/.
or utilized, may elect to be MBT taxpayers.                                       Approved businesses receive a certificate from MEGA 
                                                                         Line  2:
PART 1: REFUNDABLE CREDITS                                               each  year  showing  the  total  amount  of  tax  credit  allowed. 
Workers’ Disability Supplemental Benefit (WDSB)                          Attach the Annual Tax Credit Certificate to the return. (If the 
Credit                                                                   certificate is not attached, the credit will be disallowed.)

The  WDSB  Credit  is  available  to  an  insurance  company             MEGA Photovoltaic Technology Credit
subject to the Workers’ Disability Compensation Act of 1969. 
The credit is equal to the amount paid during that tax year by           The MEGA Photovoltaic Technology Credit is available to a 
the insurance company pursuant to Section 352 of the act, as             qualified taxpayer that enters into an agreement with MEGA 
certified by the director of the Workers’ Compensation Agency,           to  construct  and  operate  a  new  facility  in  Michigan  which 
Department  of  Licensing  and  Regulatory  Affairs  (LARA),             serves  to  develop  and  manufacture  photovoltaic  energy, 
during  the  tax  year.  The  amount  of  the  credit  is  provided  to  photovoltaic systems, or other photovoltaic technology.     This 
taxpayers by LARA.                                                       credit is available to an insurance company as an assignee 
                                                                         only.  Photovoltaic  energy,  systems,  or  technology  rely  on 
For  more  information  on  WDSB  credit  eligibility,                   solar  power.  The  credit  is  available  for  25  percent  of  the 
contact  LARA,  Workers’  Compensation  Agency,  at                      taxpayer’s  capital  investment  in  the  new  facility  during  the 
(517) 322-1879 or 1-888-396-5041 or visit the LARA Web site              tax year.
at www.michigan.gov/lara.
                                                                         The  credit  generally  must  be  taken  in  equal  installments 
Line  1: Attach a copy of the document provided by LARA to               over  a  two-year  period  beginning  in  the  tax  year  in  which 
the return to substantiate the claim for this credit.                    the certificate is issued. A taxpayer may make an irrevocable 
MEGA Employment Tax Credit                                               assignment of all or a portion of the credit or may convey the 
                                                                         right to the assignment on a form provided by MEGA, which 
The  Michigan  Economic  Growth  Authority  (MEGA) 
                                                                         will then issue assignment certificates to the assignee(s).
Employment Tax Credit promotes economic growth and jobs in 
Michigan. For a period of time not to exceed 20 years, a taxpayer        A  taxpayer  or  assignee  that  claims  a  credit  and  subsequently 
that is an authorized business or an eligible taxpayer may claim a       fails to meet the requirements of the act or any other conditions 
credit equal to the amount certified each year by MEGA.                  established  by  MEGA  in  the  agreement  may,  as  determined 
                                                                         by  MEGA,  have  its  credit  reduced  or  terminated  or  have  a 
Beginning  January  1,  2012,  this  credit  is  available  as  a 
                                                                         percentage of the credit previously claimed added back to the 
certificated  credit  to  the  extent  that  the  taxpayer  has  entered 
                                                                         tax liability of the taxpayer in the tax year that the taxpayer or 
into  an  agreement  with  MEGA  by  December  31,  2011,  but 
                                                                         assignee fails to comply. Credit recapture is reported on Form 
the credit has not been fully claimed or paid prior to January 
                                                                         4587.
1,  2012.    This  credit  must  be  claimed  beginning  with  the 
taxpayer’s  first  tax  year  ending  after  December  31,  2011,  in    A  taxpayer  certified  to  take  the  polycrystalline  silicon 
order  for  the  taxpayer  to  remain  taxable  under  the  MBT  and     credit  under  Michigan  Compiled  Laws  (MCL)  208.1432  is 
claim the credit.                                                        disqualified from taking this credit.
NOTE:  MEGA  may  certify  a  credit  based  on  an  agreement           Beginning  January  1,  2012,  this  credit  is  available  as  a 
entered into prior to January 1, 2008, under the Single Business         certificated  credit  to  the  extent  that  the  taxpayer  has  entered 
Tax (SBT). The number of years for which the credit may be               into an agreement with MEGA by December 31, 2011, but the 
claimed  for  MBT  will  be  equal  to  the  maximum  number  of         credit  has  not  been  fully  claimed  or  paid  prior  to  January  1, 
years  designated  in  the  resolution  reduced  by  the  number  of     2012.  An insurance company assignee  must claim this credit 
years for which a credit has been claimed or could have been             beginning  with  it’s  first  tax  year  ending  after  December  31, 
claimed under SBT.                                                       2011, in order to remain taxable under the MBT and claim the 
                                                                         credit.
NOTE: A taxpayer that claimed a credit under either SBT or 
MBT  that  had  an  agreement  with  MEGA  based  on  qualified 

                                                                                                                                     17

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Line 3: To claim this credit, attach a copy of the assignment            Payments  made  to  a  pension  plan,  retirement  or  profit 
certificate  received  from  MEGA.  (If  the  certificate  is  not       sharing  plan,  employee  insurance  plans,  and  payments 
attached, the credit will be disallowed.)                                under  health  and  welfare  benefit  plans,  as  well  as  the 
                                                                         administration fees paid for the administration of the health 
Film Production Credit                                                   and  welfare  benefit  plan,  are  compensation.  Compensation 
This credit is available to an insurance company as an assignee          also includes certain payments made by licensed taxpayers 
only.                                                                    that are statutorily identified. These compensation payments 
                                                                         are  calculated  on  a  cash  or  accrual  basis  consistent  with 
The  Michigan  Film  Office,  with  the  concurrence  of  the  State     the  taxpayer’s  method  of  accounting  for  federal  income 
Treasurer,  may  enter  into  an  agreement  with  an  eligible          taxes.  The  statute  provides  for  certain  exclusions  from 
production company providing the company with a refundable               compensation including employee discounts on merchandise 
credit against MBT tax liability or against taxes withheld under         and services, payments for state and federal unemployment 
Chapter 7 of the Michigan Individual Income Tax Act of 1967.             compensation  and  federal  insurance  contributions,  and 
A Post-Production  Certificate  of  Completion  will  be  issued         payments made to independent contractors. 
verifying  the  amount  of  the  credit  to  be  claimed  once  the      Expense incurred for the benefit of the taxpayer rather than for 
Michigan  Film  Office  is  satisfied  that  company  expenditures       the benefit of employees of the taxpayer is not compensation. 
and eligibility are adequately met.                                      Noncompensation  expenses  might  include  payments  reported 
The  credit  may  be  assigned  in  the  tax  year  in  which  the       on a Form 1099 to an employee for the rental of a building or 
Post-Production Certificate of Completion is received but such           for interest income. 
assignment is irrevocable. The credit must first be claimed in           This  credit  is  calculated  against  the  taxpayer’s  Michigan 
the year of assignment.                                                  compensation.
Beginning  January  1,  2012,  this  credit  is  available  as  a        Compensation  is  “in  this  state”  if  (a)  the  individual’s  service 
certificated  credit  to  the  extent  that  the  taxpayer  has  entered is performed entirely within Michigan, or (b) the individual’s 
into  an  agreement  with  the  Michigan  Film  Office  with  the        service  is  performed  both  within  Michigan  and  outside 
concurrence of the State Treasurer by December 31, 2011, but             Michigan,  but  the  services  performed  outside  Michigan  are 
the credit has not been fully claimed or paid prior to January 1,        incidental to the individual’s service within Michigan.
2012.  An insurance company assignee  must claim this credit 
beginning  with  it’s  first  tax  year  ending  after  December  31,    Example 1:  Sales  Co.  employs  Salesperson  whose  territory 
2011, in order to remain taxable under the MBT and claim the             includes both Detroit, Michigan, and Toledo, Ohio. Salesperson 
credit.                                                                  calls  on  customers  located  in  both  Michigan  and  Ohio.  The 
                                                                         compensation paid to Salesperson is not “compensation in this 
For  more  information,  contact  the  Michigan  Film                    state”  because  Salesperson’s  activity  is  not  limited  solely  to 
Office  at  1-800-477-3456  or  visit  the  Web  site  at                Michigan, and calling on customers in Ohio is not incidental to 
www.michiganfilmoffice.org.                                              Salesperson’s activity in Michigan.
Line  4: To claim this credit, include a copy of the MBT Film            Example 2:  Manufacturer  employs  Engineer  at  its  Michigan 
Credit Assignment (Form 4589) to the return.                             facility. Several times a year, Engineer travels out of state to meet 
PART 2: NONREFUNDABLE CREDITS                                            with suppliers. Although Engineer performs services both within 
                                                                         Michigan and outside Michigan, Engineer’s out-of-state services 
Compensation Credit 
                                                                         are  incidental  to  Engineer’s  services  within  Michigan.  The 
An  insurance  company  may  claim  a  credit  equal  to  a              compensation paid to Engineer is “compensation in this state.”
percentage  of  compensation  in  Michigan,  not  to  exceed 
65 percent of the insurance company’s tax liability for the tax          Renaissance Zone Credit 
year  after  claiming  the  other  credits  allowed  under  Chapter      The  Renaissance  Zone  Credit  encourages  businesses  and 
2A of the MBT Act.                                                       individuals to move into a designated Zone to help revitalize 
Line  7: Enter compensation payments made in the tax year                the  area  by  providing  a  credit  for  businesses  located  and 
on  behalf  of  or  for  the  benefit  of  employees,  officers,  or     conducting business activity within the Zone. 
directors  as  defined  in  MCL  208.1107(2).  Generally,  under         Line 15:  Complete  and  include  the MBT Renaissance Zone 
this  definition, compensation  includes,  but  is  not  limited         Credit Schedule  (Form  4595)  to  claim  this  credit. NOTE  the 
to,  payments  that  are  subject  to  or  specifically  exempt  or      changed instructions for certain taxpayers for line 24 of Form 
excepted  from  withholding  under  Internal  Revenue  Code              4595.
(IRC) § 3401 through § 3406.
                                                                         If  located  in  more  than  one  zone,  complete  and  include  a 
Compensation  also  includes  fringe  benefits  and  any  earnings       separate  Form  4595  for  each  zone.  Add  line  25b  from  each 
that are net earnings from self-employment, as defined under             Form 4595 and enter the sum on Form 4596, line 15.
IRC § 402, of the taxpayer or partner or LLC member of the 
taxpayer.  Wages,  salaries,  fees,  bonuses,  commissions,  and         NOTE:  Although  Insurance  companies  do  not  normally 
                                                                         calculate  business  income,  or  apportion  their  tax  base 
other  payments  made  in  the  tax  year  on  behalf  of  or  for  the 
                                                                         by  a  sales  factor,  both  are  required  in  the  calculation  of  a 
benefit  of  employees,  officers,  or  directors  as  well  as  self-
                                                                         Renaissance Zone credit. Use the   Business Income Worksheet 
employment earnings must be reported on a cash basis.

18

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(Worksheet  4746)  to  calculate  a  pro  forma  business                 be claimed as either a refundable accelerated credit (on Form 
income,  and calculate pro forma sales in Michigan and sales              4889)  or  a  non-refundable  credit.   Non-refundable  credits 
everywhere.  See  instructions  for  the MBT Annual  Return               and  non-refundable  carryforwards  of  the  credit  are  claimed 
(Form  4567)  for  guidance  on  the  definition  of  sales  and          here. The credit must first be claimed in the year in which the 
applicable sourcing provisions.                                           certificate of completion is issued.
For  more  information  on  Renaissance  Zones,  contact                  Line  20:  Complete  Form  4584  to  claim  this  credit  and 
the  MEDC  at  (517)  373-9808  or  visit  their  Web  site  at           carryforward the resulting overpayment.
http://www.michiganbusiness.org/.  For  information  on  the 
MBT  credit,  contact  the  Michigan  Department  of  Treasury,           The  administration  of  the  Brownfield  Redevelopment  Credit 
Customer Contact Division, MBT Unit, at (517) 636-6925.                   program  is  assigned  to  MEGA.  For  more  information  on  the 
                                                                          approval process, contact the MEDC at (517) 373-9808. 
Historic Preservation Credit
                                                                          Film Infrastructure Credit
The  Historic  Preservation  Credit  provides  tax  incentives  for 
homeowners,  commercial  property  owners,  and  businesses               This credit is available to an insurance company as an assignee 
to  rehabilitate  historic  resources  located  in  Michigan.             only.
Rehabilitation projects must be certified by the State Historic 
                                                                          An  eligible  taxpayer  may  claim  a  credit  for  investment  in  a 
Preservation Office (SHPO).
                                                                          qualified  film  and  digital  media  infrastructure  project  equal 
Beginning January 1, 2012, the historic preservation credit is            to  25  percent  of  the  base  investment  expenditures  for  the 
available  to  the  extent  that  a  taxpayer  had  a  Part  2  approval, project,  provided  the  taxpayer  enters  into  an  agreement  with 
approved  rehabilitation  plan,  approved  high  community                the Michigan Film Office,  concurred in by the State Treasurer. 
impact  rehabilitation  plan  or  preapproval  letter  by  December       The  credit  is  reduced  by  the  amount  of  any  Brownfield 
31,  2011,  but  has  not  fully  claimed  the  credit  before  January   Redevelopment  Credit  claimed  under  Section  437  of  the 
1,  2012.  The  credit  may  be  claimed  as  either  a  refundable       MBT Act for the same base investment. If the credit exceeds 
accelerated  credit  on  the Request for  Accelerated Payment             the taxpayer’s tax liability for the tax year, the excess may be 
for  the  Brownfield  Redevelopment  Credit  and  the  Historic           carried forward to offset tax liability in subsequent years for a 
Preservation  Credit  (Form  4889)  or  a  non-refundable  credit.        maximum of ten years. 
Non-refundable  credits  and  non-refundable  carryforwards  of 
                                                                          Upon  verification  that  the  taxpayer  has  complied  with  the 
the credit are claimed here.  A taxpayer may elect to claim a 
                                                                          agreement  terms  and  investment  expenditures  and  eligibility 
certificated  historic  preservation  credit  in  the  year  in  which 
                                                                          are  adequately  met,  the  Michigan  Film  Office  will  issue  an 
a credit is available and will be taxable under the MBT until 
                                                                          Investment  Expenditure  Certificate  stating  the  amount  of  the 
the  qualifying  credit  and  any  carryforward  of  the  credit  are 
                                                                          credit. The certificate received must be attached to the return.
extinguished.    The  credit  must  first  be  claimed  in  the  year 
that  the  certificate  of  completed  rehabilitation  of  the  historic  The  credit  may  be  assigned  in  the  tax  year  in  which  the 
resource was issued.                                                      Investment  Expenditure  Certificate  is  received  but  any  such 
Line 17:  Complete  Form  4584  to  claim  this  credit  and              assignment is irrevocable. Form 4589 must be attached to the 
carryforward the resulting overpayment, if any.                           return on which the credit is claimed.
                                                                          An  assigned  credit  amount  must  first  be  claimed  against  the 
Line  18a: Recapture from Form 4584, line 2. If the resource 
                                                                          assignee’s  MBT  liability  during  the  assignee’s  tax  year  in 
is  sold  or  the  certification  of  completed  rehabilitation  or 
                                                                          which the credit was assigned.
preapproval  letter  is  revoked  less  than  five  years  after  the 
historic resource is placed in service, a percentage of the credit        Beginning  January  1,  2012,  this  credit  is  available  as  a 
may be subject to recapture.                                              certificated  credit  to  the  extent  that  the  taxpayer  has  entered 
                                                                          into  an  agreement  with  the  Michigan  Film  Office  with  the 
100 percent If less than 1 year                                           concurrence of the State Treasurer by December 31, 2011, but 
80 percent If at least 1 year, but less than 2 years                      the credit has not been fully claimed or paid prior to January 1, 
60 percent If at least 2 years, but less than 3 years                     2012.
40 percent If at least 3 years, but less than 4 years                     NOTE:  To  qualify  for  the  credit,  a  taxpayer  must  not  be 
20 percent If at least 4 years, but less than 5 years                     delinquent in a tax or other obligation owed to Michigan nor be 
                                                                          owned or under common control of an entity that is delinquent. 
Questions  regarding federal    and      State  certification             A credit cannot be claimed for any direct expenditure for which 
may be     directed          to SHPO     at     517-373-1630.             a Film Production Credit was claimed against either an MBT or 
For additional       information,        go     online    to              withholding tax liability.
www.michigan.gov/mshda, and click on “Preservation.”
                                                                          For  more  information,  contact  the  Michigan  Film 
Brownfield Redevelopment Credit                                           Office  at  1-800-477-3456  or  visit  the  Web  site  at 
Beginning  January  1,  2012,  the  brownfield  redevelopment             www.michiganfilmoffice.org.
credit  may  be  claimed  as  a  certificated  credit  if  a  taxpayer    Include completed Form 4596 as part of the tax return filing.
has  a  preapproval  letter  by  December  31,  2011,  but  has  not 
fully claimed the credit by January 1, 2012. The credit may 

                                                                                                                                19

- 22 -

- 23 -

Michigan Department of Treasury Attachment 27
4974 (Rev. 04-21)

2021 MICHIGAN Schedule of Corporate Income Tax Liability
for a Michigan Business Tax Insurance Filer
Issued under authority of Public Act 36 of 2007 and PA 39 of 2011.
Taxpayer Name (print or type) Federal Employer Identification Number (FEIN)

PART 1: CERTIFICATED NONREFUNDABLE CREDITS

1. Tax Before Nonrefundable Credits from Form 4588, line 23 ............................................................................. 1. 00

2. Noncertificated nonrefundable credits (see instructions)................................................................................... 2. 00

3. Tax After noncertificated nonrefundable credits. Subtract line 2 from line 1. If less than zero, enter zero ........ 3. 00

4. Available Renaissance Zone Credit (see instructions) ...................................................................................... 4. 00

5. Renaissance Zone Credit. Enter lesser of line 3 or 4 ........................................................................................ 5. 00

6. Tax After Renaissance Zone Credit. Subtract line 5 from line 3 ........................................................................ 6. 00
7. Available Historic Preservation Credit Net of Recapture from Form 4596, line 18b. If negative, enter as a
negative number ................................................................................................................................................ 7. 00

8. Historic Preservation Credit Net of Recapture. Enter lesser of line 6 or 7......................................................... 8. 00

9. Tax After Historic Preservation Credit Net of Recapture. Subtract line 8 from line 6 ......................................... 9. 00

10. Available Brownfield Redevelopment Credit from Form 4596, line 20 .............................................................. 10. 00

11. Brownfield Redevelopment Credit. Enter lesser of line 9 or 10 ......................................................................... 11. 00

12. Tax After Brownfield Redevelopment Credit. Subtract line 11 from line 9 ......................................................... 12. 00

13. Film Infrastructure Credit from Form 4596, line 25 ............................................................................................ 13. 00

14. Certificated Nonrefundable Credits for CIT. Add lines 5, 8, 11, and 13 ............................................................. 14. 00

PART 2: CIT LIABILITY

15. Enter amount from Worksheet A, line 24 (see instructions) .............................................................................. 15. 00

16. CIT After Certificated Nonrefundable Credits. Subtract line 14 from line 15 ..................................................... 16. 00

17. Total Recapture of Certain Business Tax Credits for CIT from Form 4588, line 26 ........................................... 17. 00

18. CIT After Recapture. Add lines 16 and 17 ......................................................................................................... 18. 00

PART 3: MBT TAX COMPARED AGAINST CIT FOR INSURANCE FILERS

19. Total MBT liability from Form 4588, line 27 ....................................................................................................... 19. 00
20. If line 18 is greater than line 19, enter the difference. If line 19 is greater than or equal to line 18, enter zero.
Carry to Form 4588, line 28 ............................................................................................................................... 20. 00

+ 0000 2021 62 01 27 6

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No text to extract.

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Instructions for Form 4974
Schedule of Corporate Income Tax Liability
for a Michigan Business Tax Insurance Filer
the checkbox on line 2 of Form 4595. Enter credit amount from
Purpose
Form 4595, line 25b, for which certificated status is properly
The purpose of this form is to determine the Corporate Income claimed on Form 4595, line 2.
Tax (CIT) liability of an insurance company that files under
the Michigan Business Tax (MBT). The CIT liability will If a taxpayer has activity in more than one certificated
be compared against the MBT liability in order to determine Renaissance Zone, a separate Form 4595 will be filed for each
which liability is greater. Zone. In that case, report here the combined total of credits
claimed on all Forms 4595, line 25b, for which certificated
NOTE: A credit or recapture should not be reported on this status is properly claimed on Form 4595, line 2.
form if it is not reported on one of the following forms:
DO NOT use the Renaissance Zone credit amount from Form
• Miscellaneous Credits for Insurance Companies (Form 4573 or Form 4596 to complete this line.
4596).
Line 6: Subtract line 5 from line 3 and enter amount in field.
• Schedule of Recapture of Certain Business Tax Credits and
This figure represents the MBT liability after applying the
Deductions (Form 4587).
Renaissance Zone Credit.
NOTE: Beginning January 1, 2012, only those taxpayers with
Line 9: Subtract line 8 from line 6 and enter amount in field.
a certificated credit, which is awarded but not yet fully claimed
This figure represents the MBT liability after applying the
or utilized, may elect to be MBT taxpayers.
Historic Preservation Credit Net of Recapture.
Line-by-Line Instructions Subtract line 11 from line 9 and enter amount in field.
Line 12:
Lines not listed are explained on the form. This figure represents the MBT liability after applying the
Brownfield Redevelopment Credit.
Enter the taxpayer’s name and Federal Employer Identification
Number (FEIN) in the appropriate field. Line 14: Add lines 5, 8, 11 and 13. This is the total amount of
Certificated Nonrefundable Credits for CIT.
PART 1: CERTIFICATED NONREFUNDABLE CREDITS
Line 2: Combine the total amount of noncertificated PART 2: CIT LIABILITY
nonrefundable credits from Form 4596, line 6, and the Line 15: Effective with tax years beginning in 2019, Public Act
amounts from Form 4596, lines 13 and 15. Enter the total 222 of 2018 amends MCL 206.635, which alters the tax liability
combined amount, as this represents the allowable amount of calculation of a Corporate Income Tax (CIT) filer. Beginning
noncertificated nonrefundable credits. Jan. 1, 2019, for a CIT filer, gross direct premiums attributable
to qualified health insurance premiums are taxed at 0.95%. The
Line 3: Subtract line 2 from line 1. If less than zero, enter zero.
remaining portion of the tax base is still taxed at 1.25%.
This is the MBT liability after noncertificated nonrefundable
credits. To calculate CIT tax liability for the purpose of completing
Form 4974, the taxpayer must complete the “Michigan
Line 4: Not all Renaissance Zone credits are
Business Tax Insurance Worksheet A” in these instructions.
certificated credits to be reported on this form. See special
Carry the amount from Worksheet A, line 24, to Form 4974,
instructions on the MBT Renaissance Zone Credit Schedule
line 15.
(Form 4595) to determine which Renaissance Zone credits
are certificated. A certificated Renaissance Zone credit will Include a copy of Worksheet A with the MBT return.
be identified by the checkbox on line 2 of Form 4595. Only a
credit of that type may be reported here. Enter credit amount Line 16: Subtract line 14 from line 15. This is the amount of
the CIT liability after Certificated Nonrefundable Credits.
from Form 4595, line 25b, for which certificated status is
properly claimed on Form 4595, line 2. Line 18: Add lines 16 and 17. This is the amount of CIT
liability after the Recapture of Certain Business Tax Credits.
If a taxpayer has activity in more than one certificated
Renaissance Zone, a separate Form 4595 will be filed for each PART 3: MBT TAX COMPARED AGAINST CIT FOR
Zone. In that case, report here the combined total of credits INSURANCE FILERS
claimed on all Forms 4595, line 25b, for which certificated Line 20: Carry the amount on this line to the Insurance
status is properly claimed on Form 4595, line 2. Company Annual Return for Michigan Business and
DO NOT use the Renaissance Zone credit amount from Form Retaliatory Taxes (Form 4588), line 28. This amount is used to
4596 to complete this form. calculate the tax liability for an MBT filer.
Enter the available Certificated Renaissance Zone Credit. Include completed Form 4596 as part of the tax return filing.
Not all Renaissance Zone credits are certificated credits to be
reported on this form. See special instructions on Form 4595
to determine which Renaissance Zone credits are certificated.
A certificated Renaissance Zone credit will be identified by

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Michigan Department of Treasury
MBT Insurance Worksheet A (Rev. 12-21)

2021 Michigan Business Tax Insurance Worksheet A

Include a copy of Worksheet A with your MBT return.
Taxpayer Name                                                                                                              Federal Employer Identification Number (FEIN)

DIRECT PREMIUMS WRITTEN IN MICHIGAN                                                                                                                    A                B
                                                                                                                               Qualified Health Ins. Policies           All Other Policies
1.  Gross direct premiums written in Michigan................................................................              1.                                       00                    00
2.  Premiums on policies not taken.................................................................................        2.                                       00                    00
3.  Returned premiums on canceled policies..................................................................               3.                                       00                    00
4.  Receipts on sales of annuities ...................................................................................     4.                                       00                    00
5.  Receipts on reinsurance assumed (see instructions) ................................................                    5.                                       00                    00
6.  Add lines 2 through 5................................................................................................. 6.                                       00                    00
7.  Direct Premiums Written in Michigan.  Subtract line 6 from line 1. 
    If less than zero, enter zero .......................................................................................  7.                                       00                    00
DISABILITY INSURANCE EXEMPTION
8.  Disability insurance premiums written in Michigan, not including credit or disability 
    income insurance premiums (see instructions) ...........................................................               8.                                       00                    00
9.  Proportional share of limit and phase-out.
    Column A: Divide line 8, column A, by the sum of line 8, columns A and B.
    Column B: Divide line 8, column B, by the sum of line 8, columns A and B .............                                 9.                                       %                     %
10. Enter the sum of all disability insurance premiums from both columns of line 8 
    OR $190,000,000, whichever is less ...............................................................................................                 10.              00
11. Gross direct premiums from insurance carrier services everywhere...............................................                                    11.              00
12. Phase out ........................................................................................................................................ 12. 280,000,000  00
13. Subtract line 12 from line 11. If less than zero, enter zero ..............................................................                        13.              00
14. Exemption reduction. Multiply line 13 by 2 ......................................................................................                  14.              00
15. Subtract line 14 from line 10. If less than zero, enter zero ..............................................................                        15.              00
16. Allocated reduced exemption.
    Column A: Multiply line 15 by the percentage on line 9, column A.
    Column B: Multiply line 15 by the percentage on line 9, column B .........................                             16.                                      00                    00
17. Adjusted tax base.
    Column A: Subtract line 16, column A, from line 7, column A.
    Column B: Subtract line 16, column B, from line 7, column B.................................                           17.                                      00                    00
18. Multiply line 17, column A, by 0.4835% (0.004835) and column B by 1.25% (0.0125) .                                     18.                                      00                    00
19. Tax before credits. Add line 18, columns A and B............................................................................                       19.              00
CREDITS
20. Enter amounts paid from 1/1/2020 to 12/31/2020 to each of the following:
    a. Michigan Workers’ Compensation Placement Facility ..................................................................................... 20a.                                       00
    b. Michigan Basic Property Insurance Association .............................................................................................. 20b.                                  00
    c. Michigan Automobile Insurance Placement Facility ........................................................................................ 20c.                                     00
    d. Property and Casualty Guaranty Association .................................................................................................. 20d.                                 00
    e. Michigan Life and Health Insurance Guaranty Association ............................................................................. 20e.                                         00
21. Add lines 20a through 20e...................................................................................................................................... 21.                   00 
22. Michigan Examination Fees or Regulatory Fee......................................................................................................               22.                   00
23. Credit. Multiply line 22 by 50% (0.50) .....................................................................................................................    23.                   00
24. Tax liability before recapture. Subtract line 21 and line 23 from line 19. If less than or equal to $100, enter zero. 
    Carry amount to Form 4974, line 15 .......................................................................................................................      24.                   00

- 27 -

Instructions for the Michigan Business Tax Insurance Worksheet A
Purpose The exclusion for disability insurance premiums does not
include credit insurance or disability income insurance
To calculate a Corporate Income Tax liability for the purpose premiums.
of completing the “Schedule of Corporate Income Tax Liability
for a Michigan Business Tax Insurance Filer” (Form 4974). CREDITS
Line 20: Enter the amounts paid to the listed facilities
Line-by-Line Instructions
or associations from January 1, 2020, to December 31,
Lines not listed are explained on the form. 2020, including special assessments. Net the amounts paid
Enter the taxpayer’s name and Federal Employer Identification and refunds received during 2019 for the same facility or
Number (FEIN) used on the “Insurance Company Annual association. If refunds received exceed the amount paid in the
Return for Michigan Business and Retaliatory Taxes” (Form year for the same facility or association, enter zero.
4588). Line 20c: For tax years beginning on and after January 1, 2020
Direct Premiums Written in Michigan amounts paid to the Michigan Automobile Insurance Placement
Facility (MAIPF) that are attributable to the assigned claims
NOTE: For line 1 through line 9 and line 16 through
plan shall not be included in the calculation of this credit.
line 18, complete Column A to report Qualified Health
Insurance Policies and Column B to report all other Line 22: Enter the amount of Michigan Examination Fees or
policies. Regulatory Fees paid in 2021 (under Michigan Compiled Law
500.224).
“Qualified health insurance policies” means policies written on
risk located or residing in this state that are 1 of the following Line 24: Carry the amount from Worksheet A, line 24, to Form
types of policies: 4974, line 15. Include a copy of Worksheet A with your return.
(a) Comprehensive major medical, regardless of whether
the policy is eligible for a health savings account or
purchased on the health insurance marketplace.
(b) Student.
(c) Children’s health insurance program.
(d) Medicaid.
(e) Employer comprehensive, regardless of whether
the policy is eligible for a health savings account or
purchased on the health insurance marketplace.
(f) Multiple employer associations or trusts and any other
employer associations and trusts.
Qualified Health Insurance Policies are taxed at a special rate,
determined annually using a statutory formula.
Line 1: Enter all gross direct premiums written on property or
risk located or residing in Michigan.
Line 2: Enter premiums on policies not taken to the extent
these premiums were included in line 1.
Line 3: Enter returned premiums on canceled policies to the
extent these premiums were included in line 1.
Line 4: Enter receipts on sales of annuities to the extent these
receipts were included in line 1.
Line 5: Enter receipts on reinsurance premiums assumed to
the extent these receipts were included in line 1, and only if tax
was paid on the original premiums.
DISABILITY INSURANCE EXEMPTION
Line 8: “Disability insurance” includes any policy or contract
of insurance against loss resulting from sickness or from bodily
injury or death by accident, or both, including also the granting
of specific hospital benefits and medical, surgical and sick-
care benefits to any person, family or group, subject to certain
exclusions.

- 28 -

- 29 -

                                                     Country Codes

Countries are identified by two-letter codes – Country Codes – which are required on some Michigan Business Tax (MBT) forms, 
including the annual returns. The following is a list of countries and their codes.

AF  Afghanistan             CK  Cook Islands         IN   India                    NR  Nauru                   SB  Solomon Islands
AX  Åland Islands           CR  Costa Rica           ID   Indonesia                NP  Nepal                   SO  Somalia
AL   Albania                CI   Côte D’ivoire       IR   Iran                     NL   Netherlands            ZA   South Africa
DZ   Algeria                HR  Croatia              IQ   Iraq                     AN  Netherlands Antilles    GS  S. Georgia, Sandwich
AS  American Samoa          CU  Cuba                 IE   Ireland                  NC  New Caledonia           KR  South Korea
AD  Andorra                 CY  Cyprus               IM   Isle Of Man              NZ  New Zealand             ES   Spain
AO  Angola                  CZ   Czech Republic      IL   Israel                   NI   Nicaragua              LK   Sri Lanka
AI   Anguilla               CD  Dem. Rep. of Congo   IT   Italy                    NE  Niger                   SD  Sudan
AQ  Antarctica              DK  Denmark              JM  Jamaica                   NG  Nigeria                 SR  Suriname
AG  Antigua & Barbuda       DJ   Djibouti            JP   Japan                    NU  Niue                    SJ   Svalbard, Jan Mayen
AR  Argentina               DM  Dominica             JE   Jersey                   NF  Norfolk Island          SZ   Swaziland
AM  Armenia                 DO  Dominican Republic   JO   Jordan                   KP  North Korea             SE  Sweden
AW  Aruba                   EC  Ecuador              KZ   Kazakhstan               MP  N. Mariana Islands      CH  Switzerland
AU  Australia               EG  Egypt                KE  Kenya                     NO  Norway                  SY   Syrian Arab Republic
AT   Austria                SV   El Salvador         KI   Kiribati                 OM  Oman                    TW  Taiwan
AZ   Azerbaijan             GQ  Equatorial Guinea    KW  Kuwait                    PK   Pakistan               TJ   Tajikistan
BS  Bahamas                 ER  Eritrea              KG  Kyrgyzstan                PW  Palau                   TZ   Tanzania
BH  Bahrain                 EE   Estonia             LA   Laos                     PS   Palestinian Occ. Terr. TH  Thailand
BD  Bangladesh              ET   Ethiopia            LV  Latvia                    PA   Panama                 TL   Timor-Leste
BB  Barbados                FK   Falkland Islands    LB   Lebanon                  PG  Papua New Guinea        TG  Togo
BY   Belarus                FO  Faroe Islands        LS   Lesotho                  PY   Paraguay               TK   Tokelau
BE  Belgium                 FJ   Fiji                LR   Liberia                  PE   Peru                   TO  Tonga
BZ   Belize                 FI   Finland             LY   Libya                    PH  Philippines             TT   Trinidad & Tobago
BJ   Benin                  FR   France              LI   Liechtenstein            PN  Pitcairn                TN  Tunisia
BM  Bermuda                 GF  French Guiana        LT   Lithuania                PL   Poland                 TR  Turkey
BT   Bhutan                 PF   French Polynesia    LU   Luxembourg               PT   Portugal               TM  Turkmenistan
BO  Bolivia                 TF   Fr. Southern Terr.  MO  Macao                     PR  Puerto Rico             TC   Turks & Caicos
BA  Bosnia, Herzegovina     GA  Gabon                MK  Macedonia                 QA  Qatar                   TV   Tuvalu
BW  Botswana                GM  Gambia               MG  Madagascar                RE  Réunion                 UG  Uganda
BV   Bouvet Island          GE  Georgia              MW        Malawi              RO  Romania                 UA  Ukraine
BR  Brazil                  DE  Germany              MY  Malaysia                  RU  Russian Federation      AE  United Arab Emir.
IO   Brit. Ind. Ocean Terr. GH  Ghana                MV  Maldives                  RW  Rwanda                  GB  United Kingdom
BN  Brunei Darussalam       GI   Gibraltar           ML  Mali                      BL   St. Barthélemy         US  United States
BG  Bulgaria                GR  Greece               MT  Malta                     SH  St. Helena              UM  U.S. Minor Out. Isl.
BF   Burkina Faso           GL  Greenland            MH  Marshall Islands          KN  St. Kitts & Nevis       UY  Uruguay
BI   Burundi                GD  Grenada              MQ  Martinique                LC   St. Lucia              UZ   Uzbekistan
KH  Cambodia                GP  Guadeloupe           MR  Mauritania                MF  St. Martin              VU  Vanuatu
CM  Cameroon                GU  Guam                 MU  Mauritius                 PM  St. Pierre & Miquelon   VE  Venezuela
CA  Canada                  GT  Guatemala            YT   Mayotte                  VC  St. Vincent, Grenad.    VN  Vietnam
CV  Cape Verde              GG  Guernsey             MX  Mexico                    WS  Samoa                   VG  Virgin Islands, British
KY  Cayman Islands          GN  Guinea               FM  Micronesia                SM  San Marino              VI   Virgin Islands, U.S.
CF  Cent. African Repub.    GW  Guinea-Bissau        MD  Moldova                   ST   Sao Tome & Principe WF  Wallis & Futuna
TD  Chad                    GY  Guyana               MC  Monaco                    SA  Saudi Arabia            EH  Western Sahara
CL   Chile                  HT  Haiti                MN  Mongolia                  SN  Senegal                 YE  Yemen
CN  China                   HM  Heard, McDonald Isl. ME  Montenegro                RS  Serbia                  ZM  Zambia
CX  Christmas Island        VA   Holy See (Vatican)  MS  Montserrat                SC  Seychelles              ZW  Zimbabwe
CC  Cocos Islands           HN  Honduras             MA  Morocco                   SL   Sierra Leone
CO  Colombia                HK  Hong Kong            MZ  Mozambique                SG  Singapore               XX Countries-Other
KM  Comoros                 HU  Hungary              MM  Myanmar                   SK  Slovakia
CG  Congo                   IS   Iceland             NA  Namibia                   SI   Slovenia

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