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Small Business Alternative Credit Calculation for the Corporate Income Tax
Worksheet for the 2021 Michigan Business Tax
The Small Business Alternative Credit is NOT available if any The Small Business Alternative Credit must be reduced
of the following conditions exist: if any of the following conditions exist:
• Gross receipts exceed $20,000,000; or • $Q\ VKDUHKROGHU RU RI¿FHU KDV DOORFDWHG LQFRPH DIWHU
• $GMXVWHG EXVLQHVV LQFRPH DIWHU ORVV DGMXVWPHQW H[FHHGV ORVV DGMXVWPHQW RI RYHU EXW QRW RYHU
$1,458,600; or as determined on Form 4894.
• $Q\ VKDUHKROGHU RU RI¿FHU KDV DOORFDWHG LQFRPH DIWHU ORVV • Gross receipts exceed $19,000,000 but are less than
DGMXVWPHQW RI RYHU DV GHWHUPLQHG RQ WKH MBT $20,000,000.
6FKHGXOH RI 6KDUHKROGHUV DQG 2FHUV (Form 4894).
• &RPSHQVDWLRQ DQG GLUHFWRU IHHV RI D VKDUHKROGHU RU RႈFHU
exceed $180,000.
NOTE: A taxpayer claiming the CIT Small Business Alternative Credit on Line 28 should complete CIT Form 4894 before
completing this worksheet, and retain a copy for its records. Do not include a copy of Form 4894 as part of this return.
1. Gross Receipts (see instructions).......................................................................................................................... 1. . 00
2. Tax liability prior to this credit from Form 4946, line 27 ......................................................................................... 2. . 00
Adjusted Business Income
3. Business Income from Form 4946, line 10 ............................................................................................................ 3. . 00
4. Carryback or carryover capital loss. Enter as a positive number (see instructions) .............................................. 4. . 00
5. Carryback or carryover of a federal net operating loss from Form 4946, line 13. Enter as a positive number ..... 5. . 00
6. Subtotal. Add lines 3, 4 and 5 ............................................................................................................................... 6. . 00
7. Compensation and director fees of active shareholders from Form 4894, line 1 ................................................. 7. . 00
8. &RPSHQVDWLRQ DQG GLUHFWRU IHHV RI RI¿FHUV IURP )RUP OLQH ..................................................................... 8. . 00
9. $GMXVWHG %XVLQHVV ,QFRPH $GG OLQHV DQG ................................................................................................... 9. . 00
Small Business Alternative Credit Calculation
10. Small Business Alternative Tax. Multiply line 9 by 1.8% (0.018). If less than zero, enter zero ............................ 10. . 00
11. Small Business Alternative Credit. Subtract line 10 from line 2. If less than zero, enter zero ....................... 11. . 00
12. Allocated income used for reduction (see instructions) ......................................... 12. .00
13. Reduction percentage from Reduced Credit Table at bottom of this page (based on amount from line 12) ....... 13. %
14. Reduced Credit. Multiply the percentage on line 13 by the credit on line 11. If gross receipts from line 1 are
less than or equal to $19,000,000, carry amount to Form 4946, line 28 (see instructions) ................................... 14. . 00
Reduction Based on Gross Receipts
Complete this section if gross receipts are more than $19,000,000 but not more than $20,000,000.
15. Excess gross receipts. Subtract $19,000,000 from line 1 .................................................................................... 15. . 00
16. Excess percentage. Divide line 15 by $1,000,000................................................................................................. 16. %
17. Allowable percentage. Subtract line 16 from 100% ............................................................................................... 17. %
18. Small Business Alternative Credit. Multiply the percentage on line 17 by the credit on line 14.
Carry amount to Form 4946, line 28 ...................................................................................................................... 18. . 00
REDUCED CREDIT TABLE
If allocated* income is: The reduced credit is:
$0 - $160,000 ........................ 100% of the Small Business Alternative Credit
$160,001 - $164,999 ........... 80% of the Small Business Alternative Credit
$165,000 - $169,999 ........... 60% of the Small Business Alternative Credit
$170,000 - $174,999 ........... 40% of the Small Business Alternative Credit
$175,000 - $180,000 ........... 20% of the Small Business Alternative Credit
* See instructions for tax years less than 12 months.
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