 
Dan
Member
Username: Dan
Post Number: 460
Registered: 10-2003
| | Posted on Thursday, December 18, 2008 - 4:55 pm: |    |
Historic Preservation Tax Credits
Senate Bill 973, sponsored by Senator Cameron Brown (R-Fawn River Twp.), and House Bill 6496, will expand Michigan's historic preservation tax credits, providing the opportunity for hundreds of new construction jobs across the state. Prior to passage of this legislation, there was a 5 percent cap on Michigan's historic preservation tax credits when federal historic preservation tax credits were used. Now, beginning in 2009, Michigan will increase its cap to 20 percent, up to $8 million in the first year, in tax credits for qualified historic preservation projects. HB 6496 will allow individual property owners that do not pay taxes under the Michigan Business Tax to receive enhanced historic property rehabilitation or restoration credits and allow for credit transferability under certain circumstances.
This is good news! |
Sumas
Member
Username: Sumas
Post Number: 445
Registered: 01-2008
| | Posted on Thursday, December 18, 2008 - 5:10 pm: | |
I will be inheriting a house that is a 100 years old. It is in good shape but needs some cosmetic work. How will this bill help me? |
Novine
Member
Username: Novine
Post Number: 973
Registered: 07-2007
| | Posted on Thursday, December 18, 2008 - 5:17 pm: | |
Are you in a historic district? |
Bvos
Member
Username: Bvos
Post Number: 1135
Registered: 10-2003
| | Posted on Thursday, December 18, 2008 - 6:59 pm: | |
Sumas, the federal tax credit won't help you but the state tax credit (as it currently is without the enhanced legislation) can be a good deal for you. As Novine hinted at the house must be in a state historic district to take advantage of the state tax credits. The federal historic tax credits are only for commercial, income generating properties (rental property, commercial buildings, etc.) |
Bvos
Member
Username: Bvos
Post Number: 1136
Registered: 10-2003
| | Posted on Thursday, December 18, 2008 - 7:01 pm: | |
This bill is great news and gives a great advantage to our historic areas, usually in existing city centers, so it's good news for ending sprawl too. |
Sumas
Member
Username: Sumas
Post Number: 447
Registered: 01-2008
| | Posted on Thursday, December 18, 2008 - 7:06 pm: | |
It is in a city historic district. If state designation is the key, I'll apply now. |
Alan55
Member
Username: Alan55
Post Number: 2471
Registered: 09-2005
| | Posted on Thursday, December 18, 2008 - 8:34 pm: | |
Actually, this program has been in place for a number of years. Replaced the boiler and roof on our house and saved thousands in 1999 and 2000. |
Swingline
Member
Username: Swingline
Post Number: 881
Registered: 11-2003
| | Posted on Friday, December 19, 2008 - 9:58 am: | |
Sumas, your house doesn't have to be in a "state" historic district. It just has to be in a local historic district that has been established by a local ordinance that satisfies the guidelines of the state "Local Historic Districts Act." On the other hand, if your historic district is one that has been created by a simple proclamation of the mayor or only by the placing of some signs, you will have some more work to do in order to qualify for the tax credit program. |
Jacqueline
Member
Username: Jacqueline
Post Number: 22
Registered: 08-2008
| | Posted on Friday, December 19, 2008 - 10:22 am: | |
The Historic Designation Advisory Board at 224-3487, ask for the Historic Designation Specialist, should be able to answer your questions re. historic designation and tax credits for your property. |
Busterwmu
Member
Username: Busterwmu
Post Number: 448
Registered: 09-2004
| | Posted on Friday, December 19, 2008 - 12:16 pm: | |
Excellent, one less excuse to use for knocking an old building down. |