Jan. 13, 2009

Today Senator Jason Allen, former House Majority Leader Steve Tobocman, members of the development community and historic preservation professionals joined Governor Jennifer M. Granholm at a ceremonial bill signing for legislation that enhances the existing federal and state historic preservation tax credits in Michigan. The legislation is expected to produce hundreds of jobs across the state and spur millions of dollars in investment in historic buildings and districts.

The original bills, Senate Bill 973, sponsored by Senator Cameron Brown of Fawn River Township, and House Bill 6496, sponsored by Tobocman of Detroit, were passed after years of advocacy by a coalition led by the Michigan Historic Preservation Network.

"In these challenging economic times, we want Michigan developers who invest in historic properties to stay in Michigan rather than going where they could previously have taken advantage of better incentives," said Mark Hoffman, acting director of the Department of History, Arts and Libraries. "Michigan now offers incentives for historic rehabilitation that are competitive with neighboring states. We want out-of-state investors to come here."

State Historic Preservation Officer Brian Conway stressed that historic preservation, specifically investment in rehabilitating and reusing historic buildings, is a recognized economic driver and community revitalization tool. "We know that six jobs are created for every $250,000 of direct private investment in historic building rehabilitation, and an additional $282,500 is pumped into the economy."

In Michigan in 2008, the state and federal historic preservation tax credit programs administered by the State Historic Preservation Office resulted in private investment in historic building rehabilitations of $47,417,003, leveraging an additional $54,055,383 of indirect investment for an overall economic impact of $101,472,386 and 1,171 jobs.

The new law, which is expected to stimulate even more investment, is designed to enhance the existing state historic preservation tax credits by encouraging the use of both the federal and state credits to finance large commercial historic rehabilitation projects.

The existing state law remains intact so homeowners may still apply for a 25-percent credit for rehabilitating their homes in historic districts, and commercial property owners may apply for up to 20 percent in state tax credits in combination with a federal credit of up to 20 percent.

The State Historic Preservation Office (SHPO) administers the historic preservation tax credit programs. Program information is expected to be available at the end of the month and will be posted at www.michigan.gov/hpcredit.

The SHPO assists in the identification, rehabilitation and interpretation of Michigan's historic resources. The SHPO is a division of the Michigan Historical Center, part of the Department of History, Arts and Libraries (HAL). Dedicated to enriching quality of life and strengthening the economy by providing access to information, preserving and promoting Michigan's heritage and fostering cultural creativity, HAL also includes the Mackinac Island State Park Commission, the Michigan Council for Arts and Cultural Affairs and the Library of Michigan. For more information about HAL, visit www.michigan.gov/hal.

Read more press releases from the Department of History, Arts and Libraries (HAL).