Michigan Historic Preservation Tax Credit

Article ID: 34945  

Question
Michigan Historic Preservation Tax Credit

Answer

Purpose

To allow the eligible taxpayer to claim the Michigan Historic Preservation Tax Credit. The credit is reported here and then carried to the appropriate form, according to the type of taxpayer. Individual and Fiduciary filers carry the figures to the Michigan Individual Income Tax Return (Form MI-1040), and the Fiduciary Income Tax Return (Form MI-1041), respectively. Michigan Business Tax (MBT) filers not asking for a refund of the credit carry the figures from this form to the MBT Election of Refund or Carryforward of Credits, and Calculation of Historic Preservation and Brownfield Redevelopment Carryforward (Form 4584). MBT filers electing to claim a refund of the credit must file the Request for Accelerated Payment for the Brownfield Redevelopment Credit and the Historic Preservation Credit (Form 4889), and do not need to file this form.

What Is the Historic Preservation Tax Credit?

NOTE: Historic rehabilitation plans will no longer be certified after December 31, 2011.

This credit provides tax incentives for homeowners, commercial property owners and businesses to rehabilitate historic resources located in the State of Michigan. If the credit exceeds the taxpayer’s tax liability, the balance may be carried forward up to ten years. However, for projects for which a certificate of completed rehabilitation is issued for a tax year beginning after December 31, 2008, and for which the credit amount allowed is less than $250,000, a qualified taxpayer may elect to forgo the carry forward period and receive a refund of 90 percent of the amount that exceeds the qualified taxpayer’s tax liability. Such an election must be made in the year that a certificate of completed rehabilitation is issued and is irrevocable. The credit, which is generally nonrefundable, must be claimed in the year that the certification of completed rehabilitation of the historic resource was issued.

 

 


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