Michigan Department of Treasury                                                                                                                                             Attachment 23 
4579 (Rev. 04-21) 

2021 MICHIGAN Business Tax Qualified Affordable Housing Seller’s Deduction 

Issued under authority of Public Act 36 of 2007. 
PART 1: SELLER/BUYER IDENTIFICATION 
Note: Seller must obtain buyer’s signature and attach this form, and a copy of the buyer’s operation agreement, to the seller’s MBT  Annual Return (Form 4567).  
Seller Name (If Unitary Business Group, Name of Designated Member)                                                   Federal Employer Identification Number (FEIN) or TR Number 

Unitary Business Groups Only:  Name of Unitary Business Group Member Reporting on This Form                          Federal Employer Identification Number (FEIN) or TR Number 

Buyer Name                                                                                                           Federal Employer Identification Number (FEIN) or TR Number 

PART 2: QUALIFIED AFFORDABLE HOUSING DEDUCTION PROPERTY INFORMATION 
Street Address of Property                                                                                           Property Tax Parcel Identification Number 

City                                                     State  ZIP Code 
                                                         MI 

PART 3: CALCULATION OF SELLER’S DEDUCTION 
  1.  Gain from the sale as reported on seller’s federal tax return for this period..........................................................                       1.      00 
  2.  Number of residential rental units in this property that the buyer committed in the 
      operation agreement to operate as rent restricted units.................................................       2. 
  3.  Total number of residential rental units in this property .................................................... 3. 
  4.  Divide line 2 by line 3 and enter as a percentage............................................................. 4. % 
  5.  Multiply line 1 by the percentage on line 4. Carry to the seller’s Form 4567, line 48i. (UBGs, see instructions)  ..                                          5.      00 

PART 4: CALCULATION OF LIEN FOR INSTALLMENT SALES 
Complete only if this is the first year of an installment sale. 
  6.  Total gain over life of installment note  ................................................................................................................... 6.      00 
  7.  Multiply line 6 by the percentage on line 4  ............................................................................................................     7.      00 

PART 5: SELLER/BUYER CERTIFICATION 
SELLER CERTIFICATION 
I certify, under penalty of perjury, that the information in this return and attachments is true and complete to the best of my knowledge. 
Authorized Signature for Seller’s Tax Matters                        Authorized Signer’s Name (print or type)                                                          Date 

                                                                     Title                                              Telephone Number 

BUYER CERTIFICATION 
  n   I certify that the buyer of the property identified above is a limited dividend housing association, corporation, or cooperative organized and 
      qualified pursuant to Chapter 7 of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1491 to 125.1496. 
  n   I certify that the buyer of the property identified above is a qualified affordable housing project as defined in MCL 208.1201(9)(b), including having 
      a limitation on the amount of dividends or other distributions that may be distributed to its owners in any given year and having received funding, 
      subsidies, grants, operating support, or construction or permanent funding through one or more sources and programs named in that statute. 
  n   I understand that the deductible amount of seller’s gain, as identified on line 5 or 7 above (whichever applies), proportionately reduced with the 
      passage of time, must be reported by the buyer as recaptured tax liability if the buyer fails to qualify and operate as provided in the operation 
      agreement within 15 years after the purchase. 
  n   I understand that promptly after receiving this form the Michigan Department of Treasury will record a lien on this property in the amount identified  
      on line 5 or 7 above (whichever applies), and maintain its lien for 15 years, to secure payment in the event recapture occurs during that time. 
  n   I certify, under penalty of perjury, that the information on this form and the attached operation agreement is true and complete to the best of my knowledge. 

Authorized Signature for Buyer’s Tax Matters                         Authorized Signer’s Name (print or type)                                                          Date 

                                                                     Title                                              Telephone Number 

+  0000 2021 55 01 27 1 

4579, Page 2 

                                                     Instructions for Form 4579  
    Michigan Business Tax (MBT) Qualified Affordable Housing Seller’s Deduction 
Purpose                                                                        a  specific  number  of  the  residential  rental  units  sold  as  rent 
                                                                               restricted units for a minimum of 15 years. 
Public  Act  (PA) 168 of 2008 provides for deductions from  the                If these requirements are satisfied, the seller may take a deduction  
Business  Income  Tax  base  and  Modified  Gross  Receipts  Tax               from its Business Income Tax base – after apportionment – of the  
base for certain amounts associated with the sale of residential               gain  from  the  sale  of  the  residential  rental  units  to  the  qualified  
rental units to — and operation of those units by — a qualified                affordable housing project. If, under the agreement, the buyer agrees  
affordable housing project.                                                    to operate something less than the full amount of the rental units as  
This form is used to calculate the seller’s deduction and establish            rent restricted units, then the deduction is limited to the gain on the  
the maximum recapture that the buyer may be liable for if it fails             sale of the rental units multiplied by a fraction, which is the number  
to  qualify  as  a  qualified  affordable  housing  project  or  fails  to     of rental units sold to be operated as rent restricted units over the  
operate in accordance with the operation agreement.                            total number of residential rental units sold.  
NOTE:  Beginning January 1, 2012, only those taxpayers with a                  If  a  sale  of  qualifying  property  is  reported  on  the  installment 
certificated credit, which is awarded but not yet fully claimed or             method  for  Federal  Income  Tax  purposes,  the  gain  —  or  a 
utilized, may elect to be MBT taxpayers. If a taxpayer files an                proportional  amount  of  the  gain  —  may  be  deducted  over 
MBT return and claims a certificated credit, the taxpayer makes                time  under  the  installment  method  so  long  as  this  treatment 
the election to file and pay under the MBT until the certificated              is  consistent  with  the  seller’s treatment  of  the  transaction  for 
credit  and  any  carryforward  of  that  credit  are  exhausted.  A           Federal Income Tax purposes. 
taxpayer  making  a  valid  certificated  credit  election  may  also                                   
claim the credits on this form.                                                Liens and Recapture
                                                                               The Michigan Department of Treasury must record a statutory 
Eligibility                                                                    lien against the property subject to the operation agreement for 
Qualified  affordable  housing  project means a person that is                 the full (maximum) amount of the deduction from the Business 
organized,  qualified,  and  operated  as  a  Limited  Dividend                Income  Tax  base  of  the  seller.  If  a  sale  of  qualifying  property 
Housing  Association  that  has  a  limitation  on  the  amount  of            is  reported  on  the  installment  method  for  Federal  Income  Tax 
dividends or other distributions that  may be distributed to its               purposes, the lien will be filed in the initial year of the sale for 
owners  in  any  given  year  and  has  received  funding,  subsidies,         the full amount of the cumulative deductions. 
grants, operating support, or construction or permanent funding                If  the  buyer  fails  to  qualify  as  a  qualified  affordable  housing  
through one or more sources, including those listed below:                     project or fails to operate any of the residential rental units as rent  
  • Mortgage  or  other  financing  provided  by  the  Michigan                restricted units in accordance with the operation agreement within  
State  Housing  Development  Authority,  the  Federal  Department              15 years after the date of purchase, a proportionate amount of the  
of  Housing  and  Urban  Development  (HUD),  the  Federal                     lien  becomes  payable  to  the  State.  A  qualified  affordable  housing  
Department  of  Agriculture  for  Rural  Housing  Service,  the                project that converts some but not all of its rent restricted units      to
Michigan  Interfaith  Housing  Trust  Fund,  Michigan  Housing                 free  market  units  in  violation  of  the  operation  agreement  would  
and  Community  Development  Fund,  Federal  Home  Loan  Bank,                 experience  recapture.  Failure  to  operate  just  one  residential  rental  
Housing  Commission  Loan,  Community  Development  Financial                  unit in accordance with an operation agreement constitutes failure to  
Institution, or mortgage or other funding or guaranteed by Fannie,             operate “all or some” of the residential rental units as rent restricted  
Ginnie, Federal Housing Association, United States Department of               units in accordance with the operation agreement. The lien is payable  
Agriculture, or Federal Home Loan Mortgage Corporation.                        through a “recapture” to be added to the tax liability of the buyer in  
                                                                               the  year  the  recapture  event  occurs,  the  amount  of  which  is  equal  
  • A tax exempt bond issued by a nonprofit organization, local 
                                                                               to the full amount of the deduction allowed the seller multiplied  
government, or other authority.
                                                                               by a fraction, which is the difference between 15 and the years the  
  • A payment in lieu of tax agreement or other tax abatement.                                                                                         
                                                                               affordable  housing  project  qualified  and  complied  with  the  terms
  • Funding  from  the  state  or  local  government  unit  through  a         of  the  agreement  over  15.  This  recapture  is  reported  on  the MBT  
HOME investments partnership program.                                          Schedule  of  Recapture  of  Certain  Business  Tax  Credits  and  
  • A  grant  or  other  funding  from  a  federal  home  loan  bank’s         Deductions  (Form 4587) and is mandatory even if a taxpayer does        
affordable housing program.                                                    not meet the MBT gross receipts filing threshold.  
  • Financing  or  funding  under  the  Federal  New  Markets  Tax 
Credit Program.                                                                Line-by-Line Instructions        
  • Financing under HUD’s Hope VI Program as authorized by                     Lines not listed are explained on the form. 
Section  803  of  the  National  Affordable  Housing  Act,  HUD’s              Name and Account Number:        Enter name and account number 
Section 202 program authorized by Section 202 of the National                  as reported on page 1 of Form 4567. 
Housing  Act,  and  under  the  Low-Income  Housing  Tax  Credit               Unitary Business Groups (UBGs): Complete one form for each  
program under Internal Revenue Code § 42.                                      member  for  whom  this  schedule  applies.  Enter  the  Designated  
  • Financing or other subsidies from any new programs similar                 Member (DM) name in the Taxpayer Name field and the specific  
to any of the above.                                                           member of the UBG for which this form is filed on the line below. 
A   limited  dividend  housing  association       is organized  and  qualified Line 5: Multiply line 1 by the percentage on line 4. Carry this 
pursuant to Chapter 7 of the State Housing Development Authority               amount to the seller’s Form 4567, line 48i. 
Act (Michigan Compiled Law 125.1491 et seq).                                   UBGs:   Carry  amount  on  line  5  to  the   MBT  Unitary  Business 
The  seller  and  buyer  of  affordable  rental  units  must  enter  into      Group  Combined  Filing  Schedule  for  Standard  Members    
an “operation agreement” in which the buyer agrees to operate                  (Form 4580), Part 2A, line 45i.