Form 3581 - Michigan Historic Preservation Tax Credit

3581, Page 4

Line 4d. MBT taxpayers only, carry the amount on line 4d to

Property owners undertaking rehabilitation projects on

depreciable properties that qualify for the federal Rehabilitation

Form 4584 line 16 if not assigning the credit. If assigning any

Credit must first apply for the federal credit.

portion of the credit to yourself, carry the amount assigned to

yourself to line 10 instead.

Special Instructions for Unitary Business Groups

PART 2: MICHIGAN BUSINESS TAX FILERS ONLY

An entity reporting a Historic Preservation Credit as a member

Line 5: The Enhanced Historic Preservation Credit is equal

of an MBT Unitary Business Group (UBG) must calculate

to a percentage of qualified expenditures, not to exceed 15

the credit at the member entity level. The credit may then be

percent, recorded on the Certificate of Completion awarded

applied to the tax liability of the UBG.

by SHPO, but is limited by the maximum credit enumerated

Include this form as part of the unitary return. If there are

on the Certificate. The credit is the lesser of the percentage

of qualified expenditures or the credit ceiling established by

multiple historic credits issued under separate account

numbers, include multiple forms with the UBG return.

SHPO. The amount of the credit calculated on line 5d must

equal the amount certified by SHPO on the verification letter or

Line-by-Line Instructions

the approved “Part 3 — Certification of Completed Work” form

Lines not listed are explained on the form.

received for the project.

Name and Account Number: Enter the name and account

Line 5d. Carry the amount on line 5d to Form 4584 line 17 if

number as reported on page 1 of the applicable MBT annual

not assigning the credit. If assigning any portion of the credit

return (either the MBT Annual Return (Form 4567) for standard

to yourself, carry the amount assigned to yourself to line 10

taxpayers, MBT Insurance Company Annual Return for

instead.

Michigan Business and Retaliatory Taxes (Form 4588) or the

Line 6: The Special Consideration Historic Preservation Credit

MBT Annual Return for Financial Institutions (Form 4590)).

is equal to a percentage of qualified expenditures, not to exceed

UBGs: Complete one form for each member for whom this

15 percent, recorded on the Certificate of Completion awarded

credit applies. Enter the Designated Member (DM) name in the

by SHPO, but is limited by the maximum credit enumerated

Taxpayer Name field and the specific member of the UBG for

on the Certificate. The credit is the lesser of the percentage

which this form is filed on the line below.

of qualified expenditures or the credit ceiling established by

NOTE: If a member of a UBG holds a certificated historic

SHPO. The amount of the credit calculated on line 6d must

equal the amount certified by SHPO on the verification letter or

preservation credit and wishes to claim the credit, the entire

the approved “Part 3 — Certification of Completed Work” form

group must elect to remain taxable under the MBT until the

received for the project.

credit and any carryforward of that credit are extinguished.

IIT/Fiduciary Filers only: If a portion of the credit was

Line 6d: If line 6d is $3,000,000 or less carry the amount on

assigned to another taxpayer, leave lines 1 through 6 blank.

line 6d to Form 4584, line 21, or if any part of this credit is to

be assigned, carry the amount on line 6d to Form 4584 line 21

PART 1: ALL FILERS

if not assigning the credit. If assigning any portion of the credit

To be completed by all filers claiming a Michigan Historic

to yourself, carry the amount assigned to line 13 instead. If line

Preservation Credit.

6d is greater than $3,000,000, you should carry $3,000,000

Line 1: Enter the project number assigned by SHPO. Complete

or portion of the credit remaining to line 13 as well. The

Special Consideration credit must be assigned in increments

one Form 3581 for each project completed during the tax year.

of $3,000,000 per tax year even if that assignment is to the

Line 3: For projects for which a preapproval letter was issued

assignor.

prior to January 1, 2009, the expenditures for the rehabilitation

PART 3: INDIVIDUAL INCOME TAX/FIDUCIARY

of a historic resource must be paid not more than five years

after the certification of the rehabilitation plan. For projects

FILERS ONLY

Line 7: If assigned the credit, enter the amount of the assigned

for which a preapproval letter was issued after December 31,

2008, only those expenditures that are paid or incurred during

credit from the approval letter provided by the assignor.

the time periods prescribed for the credit under IRC § 47(a)(2)

Lines 10-14: Individual and Fiduciary Income Tax filers,

and any related U.S. Treasury regulations will be considered

calculate the amount of the Michigan Historic Preservation Tax

qualified expenditures.

Credit needed to offset the taxpayer’s tax liability. Carry the

Line 4: The Basic Historic Preservation Credit is equal

amount from line 14 to the 2012 MI-1040, line 19b.

to either 5 percent or 25 percent of qualified expenditures,

Line 15: Credit in excess of the tax liability may be carried

depending on the Certificate of Completion awarded by

forward and used in subsequent years, not to exceed ten years.

SHPO, but is limited by the maximum credit enumerated on

the Certificate. The credit is the lesser of the percentage of

Line 16: For credit certificates issued after December 31,

qualified expenditures or the credit ceiling established by

2008, that are less than $250,000, a taxpayer may elect to

SHPO. The amount of the credit calculated on line 4d must

forego the carry forward and receive a refund of 90 percent

equal the amount certified by SHPO on the verification letter or

of the amount of the credit that exceeds the tax liability.

the approved “Part 3 — Certification of Completed Work” form

The election to receive a refund must be made in the year

that a certificate of completed rehabilitation is issued and is

received for the project.

Form 3581 - Michigan Historic Preservation Tax Credit - 2012 Page 4

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