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Combined Federal and State Tax Incentives Programs

The Michigan Historic Preservation Tax Incentives Program provides for the combined use of federal and state credits. To be eligible to combine the credits a project must be eligible to participate in the federal program and must file for and receive the federal credit. Projects must also meet one of the following criteria:
  • The resource is located in a locally designated historic district.
  • The resource is listed individually, or is part of a historic district listed in the State Register of Historic Sites or the National Register of Historic Places and is in a unit of government with a population of less than 5,000 people.
  • The resource is listed individually, or is part of a historic district listed in the State Register of Historic Sites or the National Register of Historic Places and is located in a chartered summer resort and assembly association.
  • The resource is listed individually, or is part of a historic district listed in the State Register of Historic Sites or the National Register of Historic Places and is subject to a historic preservation easement.

Combined credits are broken into three types: Basic Combined credits, Enhanced credits and Special Consideration credits.

Basic Combined Credits

Basic Combined credits are non-competitive and non-capped and are equal to 5% of the projects qualified expenditures. In no case shall the combined total of federal and basic combined state historic preservation tax credits exceed 25% of the eligible rehabilitation expenses. Basic Combined projects must submit complete copies of the federal application form and all supporting documents as well as the state materials listed below. Basic Combined applications are subject to all required federal and state processing fees.

PART 1

  • Two (2) complete Federal Part 1application forms including original signature
  • Two (2) sets of color photos
  • Two (2) maps showing the location of the property and the boundaries of the historic district where applicable
  • One (1) State Part 1 application including pages one (1) and two (2) and the signature of at least one (1) owner,
  • One (1) completed Declaration of Location form for those properties located in a locally designated historic district,
  • The $25.00 State Part 1 review fee

PART 2

  • Two (2) complete Federal Part 2 application forms including original signature
  • Two (2) sets of color photos
  • Two (2) sets of supporting plans and specifications
  • One (1) Federal credit card fee payment form (optional)
  • One (1) State Part 2 application including pages one (1) and two (2) and the signature of at least one (1) owner,
  • One (1) completed Verification of State Equalized Value form
  • The State Part 2 review fee

PART 3

  • Two (2) complete Federal Part 3 application forms including original signature
  • Two (2) sets of color photos
  • One (1) Federal credit card fee payment form (optional)
  • One (1) completed State Part 3 application including pages one (1) and two (2) including the signature and tax identification number of all individuals that will be making use of the credits.
  • The State Part 3 review fee

Enhanced Credits

Enhanced credits are subject to annual caps, are competitive, and are awarded on a first come first served basis. Enhanced credits are in addition to Basic credits available. Enhanced credits are equal to up to an additional 15% of qualified expenses. In no case shall the combined total of federal, basic and enhanced combined state historic preservation tax credits exceed 40% of the eligible rehabilitation expenses (20% at the Federal level and 20% max at the State level). Enhanced Credit projects must submit complete copies of the federal application form and all supporting documents as well as the state materials listed below. Enhanced Credit applications are subject to all required federal and state processing fees.

PART 1

  • Three (3) complete Federal Part 1application forms including original signature
  • Three (3) sets of color photos
  • Three (3) maps showing the location of the property and the boundaries of the historic district where applicable
  • Two (2) State Part 1 applications including pages one (1) and two (2) and the signature of at least one (1) owner,
  • Two (2) completed Declaration of Location forms for those properties located in a locally designated historic district,
  • The $25.00 State Part 1 review fee

PART 2

  • Three (3) complete Federal Part 2 application forms including original signature
  • Three (3) sets of color photos
  • Three (3) sets of supporting plans and specifications
  • One (1) Federal credit card fee payment form (optional)
  • Two (2) State Part 2 applications including pages one (1) and two (2) and the signature of at least one (1) owner,
  • Two (2) completed Verification of State Equalized Value forms
  • Two (2) completed Supplemental Information forms including pages Part 2S-1 through Part 2S-6
  • The State Part 2 review fee

PART 3

  • Two (2) complete Federal Part 3 application forms including original signature
  • Two (2) sets of color photos
  • One (1) Federal credit card fee payment form (optional)
  • One (1) completed State Part 3 application including pages one (1) and two (2) including the signature and tax identification number of all individuals that will be making use of the credits.
  • The State Part 3 review fee

Special Consideration Credits

Special Consideration credits are limited to one (1) project in tax year 2009 and two (2) each year there after. There is no cap on the amount of credit available. Applicants receiving these credits are subject to a $3 million per person per year claimant limitation.  Special Consideration credits are in addition to Basic credits available. Special Consideration credits are equal to up to an additional 15% of qualified expenses. In no case shall the combined total of federal, basic and special consideration combined state historic preservation tax credits exceed 40% of the eligible rehabilitation expenses (20% at the Federal level and 20% max at the State level). Special Consideration projects must submit complete copies of the federal application form and all supporting documents as well as the state materials listed below. Special Consideration project applications are subject to all required federal and state processing fees.

In 2009, Complete Special Consideration credit applications must be received by the SHPO no later than 3:00pm EST on May 1, 2009.

In subsequent years,Complete Special Consideration credit applications must be received by the SHPO no later than 3:00pm EST on the first, Monday of March, to be considered for a given years credits. Incomplete applications will not be considered. Application fees and materials will not be returned.

PART 1

  • Three (3) complete Federal Part 1application forms including original signature
  • Three (3) sets of color photos
  • Three (3) maps showing the location of the property and the boundaries of the historic district where applicable
  • Two (2) State Part 1 applications including pages one (1) and two (2) and the signature of at least one (1) owner,
  • Two (2) completed Declaration of Location forms for those properties located in a locally designated historic district,
  • The $1,000.00 State Part 1 review fee

PART 2

  • Three (3) complete Federal Part 2 application forms including original signature
  • Three (3) sets of color photos
  • Three (3) sets of supporting plans and specifications
  • One (1) Federal credit card fee payment form (optional)
  • Two (2) State Part 2 applications including pages one (1) and two (2) and the signature of at least one (1) owner,
  • Two (2) completed Verification of State Equalized Value forms
  • Two (2) completed Supplemental Information forms including pages Part 2S-1 through Part 2S-6
  • The State Part 2 review fee

PART 3

  • Two (2) complete Federal Part 3 application forms including original signature
  • Two (2) sets of color photos
  • One (1) Federal credit card fee payment form (optional)
  • One (1) completed State Part 3 application including pages one (1) and two (2) including the signature and tax identification number of all individuals that will be making use of the credits.
  • The State Part 3 review fee

Included below are the various forms and instructions that describe Michigan's Combined Tax Credit program. Links to other relevant sites are also included.

For information about any of the programs described on this site, write the Michigan State Historic Preservation Office, 702 W. Kalamazoo St., P.O. Box 30740, Lansing, MI 48909-8240, or contact us at (517) 373-1630 or preservation@michigan.gov.


State Historic Preservation Office, Michigan State Housing Development Authority
Send comments about this page to preservation@michigan.gov.

Related Content
 •  Historical Architects Information Update Form
 •  Historical Architect List PDF icon
 •  Federal Tax Credits for Historic Properties
 •  State-Only Tax Credits for Historic Properties
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