Michigan Historic Preservation Tax Credit
The Michigan Historic Preservation Tax Credit is a nonrefundable credit designed to incentivize the rehabilitation of historic resources within the state. It is available to qualified taxpayers, including homeowners, commercial property owners, and businesses, who undertake rehabilitation projects on historic properties certified by the State Historic Preservation Office (SHPO).
Eligibility Criteria
- Must be an owner, long-term lessee, or assignee of a qualified historic resource.
- Rehabilitation project must be approved by SHPO after December 31, 2020.
- Qualified expenditures must meet the required threshold.
How to Claim the Credit
- Complete Form 3581 (Michigan Historic Preservation Tax Credit) for each project completed during the tax year.
- Enter the project number assigned by SHPO on Line 1 of Form 3581.
- For individual and fiduciary filers, carry the credit amount from Form 3581, Line 14, to Form MI-1040, Line 19b.
- Attach Form 3581 and any required supporting documentation to your Michigan income tax return.
Supporting Documentation Required
- Historic Preservation Certification Application, Part 1 and Part 3, signed and dated.
- Copy of “Michigan Verification of Taxable Credit Eligibility,” if applicable.
- Detailed list of qualified expenditures and dates paid.
Reporting the Credit
Individual and fiduciary filers report the credit on Form MI-1040, Line 19b. The credit amount is carried from Form 3581, Line 16a or 16b, depending on the taxpayer’s status. For fiduciary filers, the credit is reported on Form MI-1041.
Source:
Form 3581 - Michigan Historic Preservation Tax Credit
Form 5803 - Michigan Historic Preservation Tax Credit for Plans Approved after December 31, 2020
Form MI-1040 - Michigan Individual Income Tax Return
Disclaimer: Always verify details with official forms and instructions from the Federal or State Department of Revenue.