Form 3581 - Michigan Historic Preservation Tax Credit

2014 3581, Page 4

Line 4: The Basic Historic Preservation Credit is equal

NOTE: If the resource is sold or the certification of completed

rehabilitation or preapproval letter is revoked less than five years

to either 5 percent or 25 percent of qualified expenditures,

depending on the Certificate of Completion awarded by

after the historic resource is placed in service, a percentage of

the credit may be subject to recapture. If the credit has been

SHPO, but is limited by the maximum credit enumerated on

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

assigned, the recapture is the responsibility of the assignor.

qualified expenditures or the credit ceiling established by

Eligibility

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

equal the amount certified by SHPO on the verification letter or

The Michigan Historic Preservation Credit is available to

eligible assignees, owners or long-term lessees of qualified

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

historic resources who undertake rehabilitation projects that are

received for the project.

certified by SHPO.

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

Property owners undertaking rehabilitation projects on

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

depreciable properties that qualify for the federal Rehabilitation

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

Credit must first apply for the federal credit.

yourself to Form 4584, line 10, instead.

Special Instructions for Unitary Business Groups

PART 2: MICHIGAN BUSINESS TAX FILERS ONLY

Line 5: The Enhanced Historic Preservation Credit is equal

An entity reporting a Historic Preservation Credit as a member

to a percentage of qualified expenditures, not to exceed 15

of an MBT Unitary Business Group (UBG) must calculate

percent, recorded on the Certificate of Completion awarded

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

by SHPO, but is limited by the maximum credit enumerated

applied to the tax liability of the UBG.

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

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

of qualified expenditures or the credit ceiling established by

multiple historic credits issued under separate account

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

numbers, include multiple forms with the UBG return.

equal the amount certified by SHPO on the verification letter or

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

Line-by-Line Instructions

received for the project.

Lines not listed are explained on the form.

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

Name and Account Number: Enter the name and account

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

number as reported on page 1 of the applicable MBT annual

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

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

instead.

taxpayers, MBT Insurance Company Annual Return for

Line 6: The Special Consideration Historic Preservation Credit

Michigan Business and Retaliatory Taxes (Form 4588) or the

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

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

15 percent, recorded on the Certificate of Completion awarded

UBGs: Complete one form for each member for whom this

by SHPO, but is limited by the maximum credit enumerated

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

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

Taxpayer Name field and the specific member of the UBG for

of qualified expenditures or the credit ceiling established by

which this form is filed on the line below.

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

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

equal the amount certified by SHPO on the verification letter or

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

preservation credit and wishes to claim the credit, the entire

group must elect to remain taxable under the MBT until the

received for the project.

credit and any carryforward of that credit are extinguished.

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

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

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

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

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

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

PART 1: ALL FILERS

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

To be completed by all filers claiming a Michigan Historic

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

Preservation Credit.

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

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

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

assignor.

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

PART 3: INDIVIDUAL INCOME TAX/FIDUCIARY

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

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

FILERS ONLY

after the certification of the rehabilitation plan. For projects

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

for which a preapproval letter was issued after December 31,

credit from the approval letter provided by the assignor.

2008, only those expenditures that are paid or incurred during

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

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

calculate the amount of the Michigan Historic Preservation Tax

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

qualified expenditures.

Form 3581 - Michigan Historic Preservation Tax Credit - 2014 Page 4

Related Articles

Related forms

Related Categories