If the project is a multiphase project, you may request a Component Certificate of Completion and either claim or assign the component credit when the component is completed.

A "multiphase project" is a project approved by the Michigan Department of Treasury for which the total of all credits is $1,000,000.00 or less that has more than 1 component, each of which can be completed separately. A multiphase project must be an industrial or manufacturing project and can not be divided into more than 3 components. A preapproval application must state whether the project is a multiphase project.

If a project is a multiphase project, when each component of the project is completed, the designated representative identified in Part 5 of the preapproval application must submit a request for a Component Certificate of Completion to the Department. The request must include documentation that the component is complete, a detailed accounting of the cost of the component, and the cost of the eligible investment for the component of each taxpayer eligible for a credit for the project of which the component is a part.

A component is considered to be completed when a certificate of occupancy has been issued by the local municipality in which the project is located for all of the buildings or facilities that comprise the completed component.

Once this information is submitted and verified, a Component Certificate of Completion will be issued to each qualified taxpayer with eligible investments on the eligible property. The Component Certificate of Completion will state: (1) the total cost of the component and the cost of the eligible investment for each qualified taxpayer; and (2) each qualified taxpayer's credit amount for the component.

A taxpayer may assign all or part of the credit for a multiphase project after a Component Certificate of Completion is issued. The qualified taxpayer may transfer ownership of or lease the completed component and assign a proportionate share of the credit for the entire project to the qualified taxpayer that is the new owner or lessee. "Proportionate share" means the same percentage of the total of all credits for the project that the qualified investment for the completed component is of the total qualified investment stated in the preapproval letter for the entire project.

A credit assigned based on a multiphase project must be claimed by the assignee in the tax year in which the assignment is made.

The total of all credits for a multiphase project may not exceed the amount stated in the preapproval letter for the project.