Historic Preservation

Eligibility

Expenditure Requirements:

• For commercial properties, expenditures must exceed 10% of the state equalized value.
  
• For residential properties, expenditures must exceed $1,000
   (adjusted annually on “Detroit Consumer
   Price Index”).
  

Ownership Requirements:

• Commercial Credits for Income
  Producing Properties
  
• Owner
  
• Lessee for 31.5 years
  

• Residential Credits
  
• Owner
  
• Lessee for 27.5 years
  
• Types of Entities
  
• Corporations
  
• Associations
  
• Partnerships
  
• Individuals
  
• Non-profits
  
• Designation Requirements
  
• National Register of Historic Places
  
• State Register of Historic Sites
  
• Local Historic District 
  (Individually listed or contributing to 
  a listed district)

Availability

• $5 million in credits each calendar year:
  
• $2 million for commercial with expenses
   of $2 million or greater
  
• $2 million for commercial with expenses
  of less than $2 million
• $1 million for residential
  
• No project can receive more than $2 million in one calendar year
• Credits awarded on a first-come, first-serve basis

Usage Requirements

• Maintain property under Secretary of the Interior’s Standards for Rehabilitation for five years after project completion
  
• Retain ownership of the property for five years after project completion.
• May claim up to 10 years after the project completion date. Must initially claim within five years or forfeit credit.
  

Transferability

• Credits may be transferred to another entity.