Federal Tax Credits for Historic Properties

The Federal Historic Preservation Tax Incentives program encourages private sector investment in the rehabilitation and re-use of historic buildings. It creates jobs and is one of the nation's most successful and cost-effective community revitalization programs. In Michigan, the State Historic Preservation Office administers provisions of the 2017 Public Law No. 115-97 in partnership with the National Park Service and Internal Revenue Service.

Public Law No. 115-97 establishes:

a 20% tax credit for the substantial, certified rehabilitation of certified historic structures for commercial, industrial and rental residential purposes; and
a straight-line depreciation period of 27.5 years for residential property and 39 years for nonresidential property for the depreciable basis of the rehabilitated building reduced by the amount of the tax credit.

A certified historic structure is any building that is listed individually in the National Register of Historic Places, or located in a registered historic distinct and certified as being of historic significance to the district.

A registered historic district is any district that is listed in the National Register of Historic Places, or designated under a local ordinance under Michigan Public Act 169 of 1970, as amended, which has been certified by the National Park Service as substantially meeting all the requirements for listing of districts in the National Register. Simply being listed in a locally designated historic district is not sufficient to gain access to the Federal tax credits.

A certified rehabilitation is any rehabilitation of a certified historic structure that is certified as being consistent with the historic character of the property and, where applicable, the district in which it is located. The Secretary of the Interior's Standards for Rehabilitation are used to determine whether the historical character of the building is preserved through the process of rehabilitation.

More information is included in the sites below.

Tax Incentives Home Page (National Park Service)
Before You Apply (National Park Service)
NPS Application Instruction and Form (National Park Service)
Secretary of the Interior's Standards for Rehabilitation (National Park Service)
IRS Form 3468, Investment Credit (United States Department of the Treasury, Internal Revenue Service)