​Recently enacted legislation (2013 Act 145) changed the order of computation for the manufacturing and agriculture credit. The credit can now be claimed after the alternative minimum tax (AMT) rather than before the AMT. This is a benefit to taxpayers as it will eliminate the possibility that the credit will result in the taxpayer owing AMT and, if the taxpayer otherwise owes AMT, will allow the credit to offset AMT.

Please follow these instructions for claiming the manufacturing and agriculture credits on the 2013 Schedule CR:

• Leave lines 6a and 6b blank in Section A
• Use lines 16a and 16b in Section B that are titled "Reserved"
  • Line 16a is for claiming the manufacturing credit
  • Line 16b is for claiming the agriculture credit

Note: Even though corporations are not subject to AMT, corporations should also claim the manufacturing and agriculture credit on lines 16a and 16b of Schedule CR.

Persons who have already filed their 2013 individual income tax returns, and have a lower tax liability as a result of this change, may file amended returns to claim a refund of the tax paid. For more information about filing amended returns, see the Common Questions on the department's website.

March 25, 2014