IMPORTANT TAX INFORMATION

FOR HOLDERS OF CMS ENERGY AND CONSUMERS ENERGY STOCK

TAX STATUS OF DIVIDEND DISTRIBUTIONS

CMS Energy Corporation Common Stock

2011

Taxable dividend distributions.  For individuals, qualified dividend income.

2010

Taxable dividend distributions.  For individuals, qualified dividend income.

2009

Taxable dividend distributions.  For individuals, qualified dividend income.

2008

Nontaxable return of capital distributions.  Generally, reduces your tax basis in the shares.

2007

Taxable dividend distributions.  For individuals, qualified dividend income.

CMS Energy Corporation  4.5% Cumulative Convertible Preferred Stock

2010
Mandatory Conversion

On September 30, 2010, we elected to mandatorily convert all outstanding shares of the Convertible Preferred Stock. More...

2010
Dividend Distributions

Dividend distributions paid March 1, June 1 and September 1 were taxable dividend distributions.  For individuals, qualified dividend income.

2009

Taxable dividend distributions.  For individuals, qualified dividend income.

2008

Nontaxable return of capital distributions.  Generally, reduces your tax basis in the shares.

2007

Taxable dividend distributions.  For individuals, qualified dividend income.

2006

Taxable dividend distributions.  For individuals, qualified dividend income.

2005

Nontaxable return of capital distributions. Generally, reduces your tax basis in the shares.

2004

Nontaxable return of capital distributions. Generally, reduces your tax basis in the shares.

Consumers Energy Company $4.16 Preferred Stock

2011

Taxable dividend distributions.  For individuals, qualified dividend income.

2010

Taxable dividend distributions.  For individuals, qualified dividend income.

2009

Taxable dividend distributions.  For individuals, qualified dividend income.

2008

Taxable dividend distributions.  For individuals, qualified dividend income.

2007

Taxable dividend distributions.  For individuals, qualified dividend income.

2006

Taxable dividend distributions.  For individuals, qualified dividend income.

Consumers Energy Company $4.50 Preferred Stock

2011

Taxable dividend distributions.  For individuals, qualified dividend income.

2010

Taxable dividend distributions.  For individuals, qualified dividend income.

2009

Taxable dividend distributions.  For individuals, qualified dividend income.

2008

Taxable dividend distributions.  For individuals, qualified dividend income.

2007

Taxable dividend distributions.  For individuals, qualified dividend income.

2006

Taxable dividend distributions.  For individuals, qualified dividend income.

Last updated January 17, 2012