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Michigan Department of Treasury                                                                                                                                                  Attachment 06 
4571 (Rev. 04-22), Page 1 of 2 

2022 MICHIGAN Business Tax Common Credits for Small Businesses 
Issued under authority of Public Act 36 of 2007. 
Taxpayer Name                                                                                       Federal Employer Identification Number (FEIN) or TR Number 

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.                                                       • Any individual, shareholder or officer has allocated 
  • Adjusted business income after loss adjustment exceeds                                  income after loss adjustment of over $160,000 but not 
    $1,609,400.                                                                             over $180,000, or any partner has distributive share of 
  • Any individual, shareholder or officer has allocated income                             income after loss adjustment of over $160,000 but not over 
    after loss adjustment of over $180,000, or any partner has                              $180,000, as determined on Forms 4577 or 4578. 
    distributive share of income after loss adjustment of over                                •  Gross receipts exceed $19,000,000 but are not more 
    $180,000, as determined on Form 4577 or 4578.                                           than $20,000,000. 
  • Compensation and director fees of a shareholder or officer of  
    a C Corporation exceed $180,000. 
Taxpayers claiming the small business alternative credit, other than individuals and fiduciaries filing as individuals MUST complete and 
include Form 4577 or 4578, as applicable. 

    1.  Tax liability prior to this credit from Form 4568, line 6  ...........................................................................................               1.  00 

PART 1:  SMALL BUSINESS ALTERNATIVE CREDIT 
If not claiming a Small Business Alternative Credit, skip to Part 2. 
Adjusted Business Income 
    2.  Business Income from Form 4567, line 28 (see instructions)................................................................................                           2.  00 
    3.  Gross capital loss utilized on federal return (see instructions)  ..............................................................................                     3.  00 
    4.  Federal net operating loss carryover or carryback from Form 4567, line 32 .........................................................                                  4.  00 
    5.  Add lines 2, 3, and 4  ............................................................................................................................................. 5.  00 
    6.  Compensation and director fees of active shareholders from Form 4577, line 3  .................................................                                      6.  00 
    7.  Compensation and director fees of officers from Form 4577, line 4  .....................................................................                             7.  00 
    8.  Adjusted Business Income. Add lines 5, 6 and 7...................................................................................................                    8.  00 
Small Business Alternative Credit Calculation 
    9.  Small Business Alternative Tax. Multiply line 8 by 1.8% (0.018).  If less than zero, enter zero  ............................                                        9.  00 
    10. Small Business Alternative Credit.  Subtract line 9 from line 1.  If less than zero, enter zero  .........................                                           10. 00 
    11. Allocated income/distributive share of income used for reduction (see instructions)  .. 11.           00 
    12.  Reduction percentage from Reduced Credit Table on page 2 (based on amount from line 11)   ..........................                                                12. % 
    13. Reduced Credit.  Multiply line 12 by line 10.  If gross receipts from Form 4567, line 12, are less than or equal 
        to $19,000,000, carry amount to Form 4568, line 7 (see instructions)  ..................................................................                             13. 00 
    14.  Tax After Small Business Alternative Credit.  Subtract line 13 from line 1 .............................................................                            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.  Gross receipts from Form 4567, line 12 (see instructions) ....................................................................................                      15. 00 
    16.  Excess gross receipts. Subtract $19,000,000 from line 15  ..................................................................................                        16. 00 
    17.  Excess percentage. Divide line 16 by $1,000,000, and enter as a percentage  ....................................................                                    17. % 
    18.  Allowable percentage. Subtract line 17 from 100% ...............................................................................................                    18. % 
    19. Small Business Alternative Credit. Multiply percentage on line 18 by the credit on line 13. 
        Carry amount to Form 4568, line 7 ........................................................................................................................           19. 00 
    20.  Tax After Small Business Alternative Credit.  Subtract line 19 from line 1 .............................................................                            20. 00 

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2022 Form 4571, Page 2 of 2                                                               FEIN or TR Number 

PART 2:  GROSS RECEIPTS FILING THRESHOLD CREDIT 
Complete this section if apportioned gross receipts are equal to or greater than $350,000 but less than $700,000. 
See instructions for tax years less than 12 months. 
21.  Tax before credit from line 1, 14 or 20, whichever applies  ....................................................................................                     21. 00 
22.  Threshold Ceiling .................................................................................................................................................. 22. 700,000 00 
23.  Gross Receipts from Form 4567, line 12 (see instructions)  ..................................................................................                        23. 00 
24.  Apportioned Gross Receipts. Multiply line 23 by percentage from Form 4567, line 11c  .......................................                                         24. 00 
25.  Excess Gross Receipts. Subtract line 24 from line 22.  If negative, enter zero on line 27 (no credit allowed) ......                                                 25. 00 
26.  Gross Receipts Filing Threshold Credit Percentage. Divide line 25 by $350,000, and enter as a percentage .....                                                       26.         % 
27. Gross Receipts Filing Threshold Credit. Multiply line 26 by line 21.  Carry amount to Form 4568, line 8 ........                                                      27. 00 
28.  Tax After Gross Receipts Filing Threshold Credit.  Subtract line 27 from line 21. (This line must be equal to 
    Form 4568, line 9.)  ................................................................................................................................................ 28. 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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                                                                          Instructions for Form 4571 
                 Michigan Business Tax (MBT) Common Credits for Small Businesses 
                                                                                                                    determined            on  the       MBT Schedule  of  Shareholders and 
Purpose 
                                                                                                                    Officers      (Form         4577)  or the               MBT Schedule of Partners                    
To  allow taxpayers                 to calculate  the Small             Business Alternative                        (Form  4578). 
Credit and        the  Gross      Receipts        Filing      Threshold         Credit.      Credits      
are calculated       here      and   then        carried        to the  MBT Nonrefundable                       In  addition,  the Small            Business       Alternative           Credit      is      reduced      
Credits Summary (Form 4568).                                                                                        if an  Individual,      a partner          in a Partnership, a      shareholder of      
                                                                                                                   a Corporation,      or an        officer              of a C Corporation has          allocated       
       A taxpayer      is disqualified  from taking                 the  Small      Business                    income   (or      distributive  share of               income,       for  a partner)        after           
Alternative        Credit  under certain               circumstances,          which        are                 loss  adjustment      moreof            than  $160,000.  This  reduction      basedis                     
detailed below.                                                                                                 on   the  individual/partner/officer/shareholder with                                the    largest         
       A taxpayer     with     gross   receipts  allocated or                 apportioned      to               allocated      distributiveor           share      income.of          
Michigan           equal  to or   greater        than  $350,000,          but  less  than                       The  Small  Business  Alternative  Credit  also      isreduced if      gross  
$700,000, may           claim   a   Gross         Receipts       Filing    Threshold         Credit.            receipts  exceed  $19,000,000  but  are  not  more  than  $20,000,000. 
Unitary Business Groups (UBGs):                               Taxpayers that            are  part      of       C Corporations 
                                                                                                          
  a UBG          must  use    the   gross       receipts   of the        entire group before                    Allocated  income  for      CCorporations   either:   is                  
eliminations        to  determine                 if the  gross receipts        allocated      or          
apportioned      to Michigan  are  between  $350,000  and $700,000.                                             (a)      A shareholder      or officer’s                compensation             and   director      fees  
                                                                                                                     from  Form  4577,  column L, or          
NOTE:  Beginning  January 1,                      2012,      only     those    taxpayers                   
with      a certificated       credit,  which                is awarded       but  not  yet fully               (b)      A shareholder’s            compensation,                director     fees,    and   share      of
claimed   or  utilized, may            elect     to    be  MBT        taxpayers.                         If a        business income              (or  loss)        after    loss  adjustment,          from      Form     
taxpayer  files  an  MBT return                  and   claims               a certificated    credit,                4577, column              N.   
the  taxpayer  makes  the  election      to file  and  pay  under  the  MBT                                         If either  (a)      or(b) is   greater        than   $180,000         for  any      shareholder       
until  the  certificated  credit  and  any  carryforward      of that  credit                                    officer,      the     Corporation   not   is          eligible      for  the     Small      Business    
                                                                                                                or
are  exhausted.      A         taxpayer          making      a valid          certificated  credit                                Credit.      Inaddition, if   either                (a)      or(b) is   more      than    
                                                                                                                Alternative
election  may  also  claim  the  credits  on  this  form.                                                                       but  not more       than         $180,000        for  any  shareholder                   
                                                                                                                $160,000
NOTE:   A          member          of a Limited           Liability       Company           (LLC)      is       or   officer,   the  Corporation must                   reduce    the    Small       Business             
characterized  for  MBT purposes                                 as a partner,  shareholder,      or            Alternative Credit               based   on       the   officer   shareholder   or           with     the   
owner,  based  on the          federal         tax   classification                 of the  LLC.   An           largest allocated          income.       
LLC  taxed          as a Partnership  for  federal  purposes      is required      to
                                                                                                                S Corporations 
file          as a Partnership for      MBT.       Similarly,          an  LLC   taxed                    as a C
Corporation      or an      S Corporation for                 federal     purposes        must      file        Allocated       income for          S Corporations               is shareholder’s                        
under that        same     entity  type      for   MBT.                                                         compensation,  director  fees, and                      share    of      business income          (or    
                                                                                                                loss), after     loss   adjustment,         from        Form      4577,   column          N.   
NOTE:   A          person that              is a disregarded entity        for  federal      income        
tax  purposes  under  the  internal  revenue  code  shall      be classified                                    NOTE: Individuals and                  Fiduciaries            filing   Individuals   as          do   not   
as      a disregarded  entity for              the   purposes       of  filing  the  MBT                        need   file   to Form           4577   Form   or    4578.        
annual  return.                                                                                                 NOTE:  Taxpayers leasing                      employees          from    professional                    
Fiscal  Year  Filers:               See “Supplemental                   Instructions        for                 employer        organizations  must include                     the   compensation           of          
Standard         Fiscal MBT         Filers”      in the                  MBT Forms and                          officers    (of  the operating           company)           and     shareholders          who            
Instructions for Standard Taxpayers (Form  4600).                                                               receive  compensation   determining   in                     the     eligibility      for    the  Small   
                                                                                                                Business  Alternative  Credit  even though                           their  compensation             is      
Eligibility for the Small Business Alternative                                                                  paid   the   by  professional        employer            organization.       
Credit                                                                                                          NOTE:      If   a shareholder owned                 stock        for  less  than      the    entire   tax   
Taxpayers   are        not  eligible  for the          Small        Business    Alternative                     year      ofthe corporation,        or      an officer      served    as an      officer    less          
Credit       if any      theof  following  conditions  exist:                                                   than     the  entire tax        year,   shareholder           compensation             amounts           
                                                                                                                must   annualized   be           when    determining              disqualifiers.        
  • Gross  receipts  exceed  $20,000,000. 
  • Adjusted  business  income  after  loss  adjustment  exceeds:                                               Tax Years Less Than 12 Months 
       ○ $1,609,400          for  Corporations      Partnershipsor                       (and  LLCs                If the    reported         tax   year      is less  than     12  months,  gross  receipts,            
       federally  taxed   such).   as                                                                           adjusted business              income,   partners’         distributive      share           of business  
                                                                                                                income,  and  shareholders’  and  officers’  allocated                                   or distributive  
       ○ $180,000          for   Individuals   Fiduciaries.   or                                                             of income        must  be     annualized      to determine                eligibility.      If
                                                                                                                share
  • Any     shareholder      or officer  has allocated                   income        after  loss              annualized  gross  receipts  exceed                      $19,000,000  but  do  not               exceed  
    adjustment   over   of          $180,000   any   or          partner       has      distributive            $20,000,000,  annualize  figures                         to compute      the     Reduction        Based  
    share      ofincome after       loss       adjustment       of over       $180,000,       as                on  Gross  Receipts,  lines      15 through  20.  

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Annualizing                                                                                         Adjusted Business Income 
Multiply   each      applicable        amount,  total  gross receipts,            adjusted          Line  2: Enter  business  income  from  Form  4567,  line  28.      If not  
business income,         and     shareholder,         officer,  and   partner    income    by       subject      to Business       Income  Tax,  enter business               income         from       
12  and  divide  the result          by   the  number            of months    the  business         the  Business Income Worksheet                       (Worksheet  4746) in                Form       
operated. Generally,               a business      is considered      in business for     one       4600.  Attach  this  worksheet      to the  return. 
month      if the business       operated      for    more  than   half  the   days         of the              Enter  the business       income         before    eliminations          from           
                                                                                                    UBGs: 
month.      If the   tax     year      is less  than  one   month,  consider  the  tax              Form  4580,  Part  2B,  line  30A. 
year          to be one month    for  the  purposes           of the calculation.  
                                                                                                    Line  3: Enter all      capital    losses   that      were      used  federally            to offset  
Loss Adjustment                                                                                     capital  gain.  This      is not  the  net  figure  found  on  the  Schedule      D
   If taxpayers      are     not  eligible for       the  full   Small  Business                    lines  identified  below.          It is the  amount      of capital  losses  that  were  
Alternative   Credit  due to             an  adjusted     business    income      or                used      in reaching   the  net  figure on          the  federal    return      lines.              If
allocated  income  disqualifier, they                 may   benefit     from  the       MBT         filing      a U.S.  Form  1040      or 1041,  include  the  capital  loss  amount  
Loss  Adjustment  for  the  Small  Business  Alternative  Credit                                    that   the  Individual  or Fiduciary         was      able     to  use   against      the           
(Form   4575).      If the  adjusted  business income                 was   less   than             capital   gain   and  the  capital loss      amount            that  the  Individual                 or
zero      in any      of the  five  years  immediately  preceding  the  tax  year                   Fiduciary  was  permitted      to deduct  from  ordinary  income  ($3,000  
for  which      a taxpayer      is claiming      a credit         and  an  MBT Small                or  less).  Use  both  long-term  and  short-term  capital  losses  here. 
Business   Alternative  Credit  was received                     for  that  same   year,         
the  taxpayer  may  be  able      to reduce  the  current  year’s  adjusted                         Include                                                                                            
                                                                                                                the capital losses    used     in      calculating       the net figure                
business  income      or allocated  income  amounts  by  the  loss.  See                            using                                                                                       
                                                                                                             “Net short-term capital         gain        or  (loss)”     and  “Net       long- 
Form  4575  for  more  details.                                                                     term                                                                                               
                                                                                                          capital gain   or (loss)” from Schedule     D of federal Forms                               
                                                                                                    1040,  1041,  1065,  1120  and  1120S      as applicable. 
   A loss    adjustment         will   not   prevent      a reduction      to the  Small         
                                                                                                    UBGs:  Combine  all  capital  losses  for  all  members  and  enter  on  
Business   Alternative Credit              based      on  gross   receipts    that               
                                                                                                    line    3.
exceed   $19,000,000.      It will  also not            change       the  amount     of          
compensation  on  Form  4577,  column      L, for          aC Corporation.                          Line 6 and line 7: Fiscal Year Filers:                           See  “Supplemental                 
                                                                                                    Instructions  for  Standard  Fiscal  MBT  Filers”      in Form  4600. 
Special Instructions for UBGs 
                                                                                                    Small Business Alternative Credit Calculation 
UBGs  calculate  the  gross  receipts  and  adjusted  business  income  
                                                                                                    Line 11:      The   Small  Business Alternative                Credit                 is reduced  
disqualifiers      at the  UBG  level  without  eliminating  intercompany  
                                                                                                       if an    Individual,      a partner          in a Partnership,      a shareholder      of
transactions.   For      a UBG      to claim      a small         business  alternative          
                                                                                                       a Corporation,      or an   officer              of a C Corporation          has      allocated  
credit,  each  member      of the  UBG  that          is a corporation  (including  
                                                                                                    income   (or  distributive  share of         income,           for            a partner)     after  
an   entity  taxed federally           as such)      must  file   Form    4577.   Each           
                                                                                                    loss  adjustment      of more  than  $160,000.  This  reduction      is based  
member      of the    UBG         that          is a partnership     (including    an  entity  
                                                                                                    on   the  individual/partner/officer/shareholder with                           the  largest        
taxed   federally      as such)        must     file  Form  4578.  The disqualifier              
                                                                                                    allocated   or   distributive  share             of income.         Enter  the  allocated           
that      is based  on  allocated or         distributive      share    of  income                is
                                                                                                    income      of the  shareholder      or officer  with  the  highest  allocated  
applied  on      a separate  entity  basis  using      a pro  forma  calculation  
                                                                                                    income  after  loss  adjustment      or the  highest  distributive  share      of
for  business  income  and      is not      acombined              amount  received  from  
                                                                                                    income  assigned          to a partner      or individual,  even      if that  figure      is
all  members          of a UBG.          See   the   “Supplemental        Instructions      for  
                                                                                                    $160,000      or less. 
Standard  Members      in UBGs”  section      in Form  4600. 
                                                                                                       If loss    adjustment      is successfully        applied      to fully      or partially  
Line-by-Line Instructions                                                                           cure   an  owner’s  allocated or         distributive          income     disqualifier,             
                                                                                                    enter  on  line      11 the  number  from  Form  4575,  line    5.
Lines not listed are explained on the form. 
                                                                                                    Line  12:  For      a taxpayer  whose owners                   or   officers    all   have          
Name and Account Number:                        Enter  name  and  account  number  
                                                                                                    allocated      or distributive  share      of income  after  loss  adjustment  
as  reported  on  page          1 of the  MBT Annual Return  (Form  4567). 
                                                                                                    of  $160,000      or less,  enter  100  percent.  All  other  taxpayers,  see  
UBGs:        Complete  one  form  for  the  group.  Enter  the  Designated                          the  table      at the  bottom      of page          2 of this  form      to determine  what  
Member   (DM)         name            in the  Name  field  and the        DM      account           percent      to enter  on  this  line. 
number      in the  Federal  Employer  Identification  Number  (FEIN)  
                                                                                                    Line 13:  All  taxpayers  must  complete  this  line. 
or  TR  Number  field. 
                                                                                                       If gross   receipts    from    Form     4567,      line     12,   are  $19,000,000           or  
PART   1: SMALL                 BUSINESS             ALTERNATIVE CREDIT                             less,  carry  the  amount on      line   13         to Form    4568,          line      7. For  tax  
Skip      to Part          2 of this  form      if not  claiming      a Small     Business          years  less  than  12  months,  use  annualized  gross  receipts.   For  
Alternative  Credit.                                                                                guidance,   see  the  “Annualizing” section                          at the  beginning of           
Business   income  is adjusted               by    federal  net  operating        loss              these  instructions.   
carryover   or  carryback from               Form     4567,      line 32.  It is                 
                                                                                                    UBGs:  For  the purpose           of  calculating         the  credit     reduction                 
also   adjusted  by compensation                   and  director  fees  of active                
                                                                                                    based   on  gross receipts,       the   UBG         combined         gross      receipts            
shareholders  and  officers  from  Form  4577  and      by capital  losses. 
                                                                                                    must   reflect   the  sum of      every  member’s              gross    receipts     on               a
                                                                                                    12-month  basis,  before  eliminations.  Therefore,      if no  members  
                                                                                                    of   the  UBG are      short-year     filers,      use  the    amount     from       the            

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MBT Unitary Business Group Combined Filing Schedule for 
Standard Members (Form 4580),               Part  2B,  line  17A.  Otherwise,            
for  all  short-year  members         of the  group,  annualize  their  gross            
receipts  amount  from Form      4580,     Part   2A,  line  17A,  and         then      
combine  the  annualized  amounts  with  the  gross  receipts  (Form  
4580,  Part  2A,  line  17A)  for  the  remaining  group  members. 
Reduction Based on Gross Receipts 
Line 15:  For  tax  periods  less  than  12  months,  enter  annualized  
gross   receipts  to determine          if annualized  gross receipts            are     
more  than  $19,000,000  but  not  more  than  $20,000,000. 
UBGs:  To  calculate the     entry  for    this  line,  see the  UBG                     
guidance  under  line  13.  Enter  the  sum      of all  members’  12-month  
basis  gross  receipts,  before  eliminations,      on line          15 of this  form. 
PART   2: GROSS RECEIPTS FILING THRESHOLD 
CREDIT 
Complete  Part          2 if apportioned   gross  receipts   are  equal                    to or
greater  than  $350,000  but  less  than  $700,000. 
Line 23:  For  tax  periods  less  than  12  months,  enter  annualized  
gross  receipts.  For  guidance, see     the  “Annualizing”      section                   at
the  beginning      of these  instructions. 
UBGs:  To  calculate the     entry  for    this  line,  see the  UBG                     
guidance   under  line 13.   Enter  the  sum  of all  members’                           
12-month  basis  gross receipts,    before    eliminations,      on  line        23      
of  this  form.  
Include completed Form 4571 as part of the tax return filing. 

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