Michigan Governor Signs Legislation Reinstating State Historic Tax Credit
Michigan Gov. Gretchen Whitmer signed legislation Wednesday that reinstates the state historic tax credit (HTC) through the end of 2030. S.B. 54 grants a state HTC for 25% of qualified rehabilitation expenses, with an annual statewide cap of $5 million and a per-taxpayer cap of $2 million. The legislation sets aside $2 million annually for large nonresidential historic resources, $2 million for small nonresidential historic resources and $1 million for residential historic resources–all reliant on there being at least that level of applications for the categories in a given year. The credit is effective for taxpayers who receive a certificate of completed rehabilitation after Dec. 31, 2020. Michigan’s previous state HTC expired in 2012.
For more information on the state and federal HTC, see the 2020 edition of the Novogradac Historic Rehabilitation Handbook, which includes new sections about the 2020 CARES Act, combining HTCs with the opportunity zones incentive and more.