Instructions For Completing Form 3581 - Michigan Historic Preservation Tax Credit
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1Instructions for Completing Form 3581
Michigan Historic Preservation Tax Credit
The Michigan Historic Preservation Tax Credit provides tax
Line - By - Line Instructions
incentives for homeowners, commercial property owners and
Line 3: State Equalized Value (SEV). If you have multiple projects,
businesses to rehabilitate historic commercial and residential
leave this line blank and attach a separate list which includes the
resources located in the State of Michigan.
property name, SEV and qualified expenditures for each project.
What is the Credit
Line 4: Qualified Expenditures. If multiple projects, enter the total
qualified expenditures for all projects.
The Michigan Historic Preservation Tax Credit is a nonrefundable
credit. However, if the credit exceeds the taxpayer's tax liability, the
Line 6: If you are eligible, you must claim the Federal Rehabilitation
balance of the credit may be carried forward up to ten years.
Credit on U.S. 3468, Investment Credit. Enter the amount from U.S.
3468, line 1c for property located in Michigan.
This credit is available to qualified taxpayers, with a
rehabilitation plan certified after December 31, 1998 and before
Line 8: If you were assigned the Historic Preservation Credit, enter
January 1, 2003. The credit must be claimed in the year that the
the amount of the assigned credit from the completed Historic
certification of completed rehabilitation of the historic resource is
Preservation Credit Assignment, form 3614. Do not complete lines 3
issued, and within five years of the year the rehabilitation plan was
through 7 unless you are claiming a Historic Preservation Credit for
certified.
a project other than the credit for which you were assigned.
Line 10: Individual and fiduciary income tax filers, calculate the
Taxpayers may receive a Michigan credit equal to 25 percent of
amount of historical credit needed to offset your tax liability. Enter
the qualified expenditures. For taxpayers eligible for the federal
the amount from line 10e on your 1999 MI-1040, line 24b or on your
credit under Section 47(a)(2) of the Internal Revenue Code (IRC), the
1999 MI-1041, line 19b. Credit in excess of the tax liability may be
Michigan credit is 25 percent of the qualified expenditures less the
used in subsequent years.
amount of the federal credit claimed.
NOTE: If the resource is sold or the certification of completed
Attachments
rehabilitation is revoked less than five years after the credit is
To claim your credit, you must attach the items listed below to your
claimed, a percentage of the credit will be subject to recapture.
MI-1040, MI-1041 or C-8000.
Eligibility
• Completed Michigan Historic Preservation Tax Credit (form
3581)
The Michigan Historic Preservation Tax Credit is available to
eligible assignees, owners or long-term lessees of qualified historic
• Certificate of Completed Work
resources who undertake rehabilitation projects that are certified by
• Certificate of historic significance related to the historic resource
the State Historic Preservation Office (SHPO), Michigan Historical
Center, Michigan Department of State.
• A detailed list of qualified expenditures
Property owners undertaking rehabilitation projects on
• Completed Historic Preservation Credit Assignment, form 3614,
depreciable properties that qualify for the federal historic
if applicable
preservation tax credit, must first apply for the federal credit.
Treasury Forms are Available From:
Qualified Expenditures
• Michigan Department of Treasury web site at:
Qualified expenditures are capital expenditures that qualify for the
federal rehabilitation credit if the taxpayer is eligible for that credit or
• 1-800-FORM-2-ME (1-800-367-6263)
capital expenditures that would qualify for the federal credit except
that the expenditures were made for a historic resource that is not
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eligible for the federal credit. A taxpayer with qualified expenditures
eligible for the federal credit must claim and receive the federal credit
• If you have questions regarding the tax credit, contact the
to qualify for the Michigan credit. The expenditures must be paid
Michigan Department of Treasury:
after December 31, 1998 for the rehabilitation of a historic resource
Individual Income Tax - 1-800-487-7000
but not more than five years after the certification of the rehabilitation
Single Business Tax - (517) 373-8030
plan.
The amount of the qualified expenditures must be equal to or
• If you have questions regarding federal and state certification,
greater than 10 percent of the State Equalized Value (SEV) of the
contact the State Historic Preservation Office, Michigan
rehabilitated property. If the historic resource to be rehabilitated is
Historical Center, Michigan Department of State at
(517) 373-1630
part of a historic or non-historic resource, only the SEV for that
portion can be used. If the SEV has not been determined for the
Additional Information is Available at:
historic portion, or the historic resource to be rehabilitated does not
have an SEV, the total qualified expenditures must be equal to or
State Historic Preservation Office
greater than 5 percent of the resource's appraised value.
Federal Historic Preservation Tax Incentives
www2.cr.nps.gov/
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