Thousands of Resources, Ready to help.
It is possible to combine Federal and State Historic Tax Credits for a single rehabilitation project. This would allow for a 20% Federal Tax Credit plus a 25% State Tax Credit on eligible commercial projects. However, doing so will require meeting the individual requirements for each program and a separate, complete, application for each.
Learn more about combining Federal and State Historic Tax Credits in Michigan with these Frequently Asked Questions:
Can the State and Federal Historic credits be combined?
For income-producing properties, the State and Federal credits may be combined.
What is the relationship between the Federal and State historic tax credit program?
The Federal tax credit application and review process is independent from the State tax credit program. All existing IRS/NPS rules and processes remain in place and unchanged by the State program. The State credits are semi-dependent on the Federal credits. For those projects seeking both Federal and State credits, the project’s State application will be considered to have been complete on the day it was received provided that the corresponding Federal approval is issued before the end of the 120-day Stated review period. If the Federal approval is not issued within 120-days of the receipt date of the corresponding State application, the State application will then be considered to be complete on the date that the Federal determination is issued.
Is the amount of the State credits impacted by the Federal credit when combined?
No. When combined, the project may receive both the full 25% State and 20% Federal credits. (Please Note: There may be federal tax consequences associated with combining the credits. You should always discuss your specific tax circumstances with a well-qualified tax professional. The SHPO cannot give tax or legal advice.)
Learn more and apply for each tax credit program: