Instructions For Completing Form 3581 - Michigan Historic Preservation Tax Credit
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2Instructions for Completing Form 3581
Michigan Historic Preservation Tax Credit
What is the Historic Preservation Tax Credit?
Line - By - Line Instructions
The Michigan Historic Preservation Tax Credit provides tax
NOTE: If this claim is for a carryover or an assigned credit do
not complete line 3 through 7.
incentives for homeowners, commercial property owners and
businesses to rehabilitate historic commercial and residential
Line 3: State Equalized Value (SEV). If you have multiple
resources located in the State of Michigan.
projects, leave this line blank and attach a separate list which
includes the property name, SEV and qualified expenditures for
The Michigan Historic Preservation Tax Credit is a
each project.
nonrefundable credit. However, if the credit exceeds the
taxpayer's tax liability, the balance of the credit may be carried
Line 4: Qualified Expenditures. If multiple projects, enter the
forward up to ten years.
total qualified expenditures for all projects.
This credit is available to qualified taxpayers, with a
Line 6: If you are eligible, you must claim the Federal
rehabilitation plan certified after December 31, 1998 and before
Rehabilitation Credit on U.S. 3468, Investment Credit. Enter the
January 1, 2003. The credit must be claimed in the year that the
amount from U.S. 3468, line 1c, for property located in Michigan.
certification of completed rehabilitation of the historic resource
Line 8: If you were assigned the Historic Preservation Credit, enter
is issued, and within five years of the year the rehabilitation plan
the amount of the assigned credit from the authorized Michigan
was certified.
Historic Preservation Credit Assignment, form 3614.
Taxpayers may receive a Michigan credit equal to 25 percent of
Line 11: Individual and fiduciary income tax filers, calculate the
their qualified expenditures. For taxpayers eligible for the federal
amount of historical credit needed to offset your tax liability. Enter
credit under Section 47(a)(2) of the Internal Revenue Code
the amount from line 11e on your 2000 MI-1040, line 24b or on your
(IRC), the Michigan credit is 25 percent of the qualified
2000 MI-1041, line 19b. Credit in excess of the tax liability may be
expenditures less the amount of the federal credit claimed.
used in subsequent years.
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
claimed, a percentage of the credit will be subject to recapture.
your 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
• Historic Preservation Certification Application, Part 1
eligible assignees, owners or long-term lessees of qualified
Evaluation of Eligibility signed and dated
historic resources who undertake rehabilitation projects that are
• Historic Preservation Certification Application Part 3, Request
certified by the State Historic Preservation Office (SHPO),
for Certification of Completed Work, signed and dated
Michigan Historical Center, Michigan Department of State.
• A detailed list of qualified expenditures
Property owners undertaking rehabilitation projects on
• Authorized Michigan Historic Preservation Tax Credit
depreciable properties that qualify for the federal historic
Assignment, form 3614, 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
• 1-800-FORM-2-ME (1-800-367-6263)
credit or capital expenditures that would qualify for the federal
Questions
credit except that the expenditures were made for a historic
• If you have questions regarding the tax credit, contact the
resource that is not eligible for the federal credit. A taxpayer
Michigan Department of Treasury:
with qualified expenditures eligible for the federal credit must
claim and receive the federal credit to qualify for the Michigan
Individual Income Tax - 1-800-487-7000
credit. The expenditures must be paid after December 31, 1998
Single Business Tax - (517) 373-8030
for the rehabilitation of a historic resource but not more than five
• If you have questions regarding federal and state certification,
years after the certification of the rehabilitation plan.
contact the State Historic Preservation Office, Michigan
The amount of the qualified expenditures must be equal to or
Historical Center, Michigan Department of State at
greater than 10 percent of the State Equalized Value (SEV) of
(517) 373-1630.
the rehabilitated property.
If the historic resource to be
Additional Information is Available at:
rehabilitated is part of a historic or non-historic resource, only
State Historic Preservation Office
the SEV for that portion can be used. If the SEV has not been
determined for the historic portion, or the historic resource to be
rehabilitated does not have an SEV, the total qualified
Federal Historic Preservation Tax Incentives
expenditures must be equal to or greater than 5 percent of the
www2.cr.nps.gov/
resource's appraised value.
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