Tax Incentives for Historic Buildings

Historic buildings are tangible links with the past. They help give a community a sense of identity, stability and orientation. The federal and state governments encourage the preservation of historic buildings through various programs including federal and state income tax incentives and grant programs to support the rehabilitation of historic and older buildings.

Federal Preservation Tax Credits are offered by the National Park Service - Technical Preservation Services, but coordinated through each state's State Historic Preservation Office. The tax credit is only available to properties that will be used for a business or other income-producing purpose, and a "substantial" amount must be spent rehabilitating the historic building. For program requirements, visit the Federal Tax Credits for Historic Properties webpage.

State Preservation Tax Credits were enabled by Public Act 343 of 2020. This state credit will be available for both income-producing properties and private residences. The State of Michigan is currently working through the rulemaking process to establish the parameters of this new program. This Frequently Asked Question document addresses many FAQ's as the new state program moves toward finalization.

Combined Federal and State Tax Credits are expected to be enabled once the framework for the state program is established and applications can be accepted.