For 12 years, the Michigan Historic Tax Credit helped preserve and save hundreds of buildings and homes across our state while generating billions in economic impact.
The Michigan Historic Tax Credit was introduced in 1999, following years of advocating by preservationists, stakeholders, developers, city leaders and the Michigan Historic Preservation Network. The creation of this program kick-started a tremendous amount of reinvestment in historic properties across Michigan, in both large cities and smaller communities alike.
In its 12-year life, $206.8 million in credits were awarded. With this incentive:
• $1.98 billion in investment in Michigan rehabilitation projects were generated.
• $316 million in federal tax credits were leveraged
• 32,000 jobs were created.
• $9.58 in direct economic impact was initiated by every $1 awarded.
Moreover, the federal credit can be used only for income producing properties, not residential properties.
This economic impact was catalyzed through an approval process that afforded homeowners and commercial building owners alike a 25 percent credit. With commercial structures, the owner had to apply for the 20 percent federal rehabilitation tax credit first. If approved, the state credit added 5% on top of it, bringing it to the same 25 percent total. For owner-occupied homes, the program provided a 25 percent credit for approved work expenses.
The state historic tax credit was officially eliminated in 2011, along with other tax credits – victims of the state’s ongoing budget crises. Michigan is now one of only 13 states that does not offer tax credits to help save historic properties. Since that time, an unknown number of historic properties in every corner of our state have sat empty. Though it is true that a small number of developers have rehabilitated historic buildings in some of our state’s largest cities in the last few years, that same trend has not been witnessed in our smaller communities. Nor have Michiganders been able to use federal tax credits to fix up their homes, as the federal tax credit does not apply to residential properties.
The Michigan Historic Tax Credit is a much-needed economic development, neighborhood improvement and community building tool. Help restore the credit today!