LANSING – Governor Gretchen Whitmer has signed a law reinstating a tax credit for historic monument projects, which was abolished in 2011 as part of former Governor Rick Snyder’s state tax reform strategy.
Senate Act 54, sponsored by Senator Wayne Schmidt, R-Traverse City, and incorporated into law Dec. 30, changes the state income tax law to allow a tax credit for preservation of heritage property of up to 25 percent The qualified cost granted for the refurbishment is historic buildings, structures and sites. Rehabilitation projects and locations that use the tax credit must be certified by the State Historic Preservation Office.
Monument preservation advocates have identified the tax credit as an important tool, especially for homeowners, to preserve and refurbish their historic properties. Proponents of the tax credit reintroduction previously announced to MiBiz that removing it had slowed remediation activities across Michigan.
For example, the initial state tax credit in Kalamazoo was used before being eliminated. Real estate owners in the city of Kalamazoo have spent more than $ 3.6 million renovating historic buildings. This makes Kalamazoo the largest per capita user of the tax credit in the state.
Residents of the historic Heritage Hill district in Grand Rapids also supported the reintroduction of the tax credit.
“We know that everyone is ready to take advantage of this tax credit after too many years without it,” says the neighborhood association’s website. “It shows what an important conservation and economic instrument this is for our communities.”
For the Historic Preservation Tax Credit, the total of all pre-approved credits could not exceed $ 5 million in a calendar year, and taxpayers could not request a credit greater than $ 2 million for a single property.
Before homeowners or long-term tenants can apply for use of the new tax credit, the Michigan State Historic Preservation Office must go through a formal settlement process that will include public comments over the next several weeks.