Restoring Michigan’s State Historic Tax Credit
Albion is a community rich in history, full of historic architecture, homes, and buildings and with a bright future ahead. A key component of honoring that history is restoring historic homes and buildings to their former glory. However, preservation and restoration is an expensive task and historic tax credits lessen the barriers to historic preservation. The federal government has an active historic tax credit program and 35 states have active state programs. Michigan is one of 15 that does not have an active program.
Michigan State Historic Tax Credit
In 2011 the State of Michigan eliminated its state historic tax credit program due to budget constraints. In early 2019 the MI Impact Coalition, Michigan Historic Preservation Network, and Michigan lawmakers began the work to revive Michigan’s historic tax credit. “Michigan lawmakers revive push of historic tax credit“
MI Impact Coalition shared the following
“Legislation to reinstate the Michigan Historic Tax Credit has been introduced in the State legislature in 2019. Senate Bill 54 (Sen. Wayne Schmidt), and House Bill 4100 (Rep. Ben Frederick), will reinstate the popular program and economic development engine that offered a credit of up to 25 percent of rehabilitation expenses against state income tax liability. The credit consistently proved to be a sound investment for Michigan, returning $11 for every $1 put into the program, but was eliminated with other incentives in 2011. Michigan is now one of only 15 states in the country that does not have a historic tax credit program, putting our state at a serious competitive disadvantage.“
How Does this Benefit Albion
The question is how does reinstating the State Historic Tax Credit benefit Albion? We spoke with Jessica Flores, Principle of Preservation Forward and she shared a few insights with us.
First, the State Historic Tax Credit will benefit both homeowners and owners of commercial buildings. The investments made throughout the community, improve the whole community.
Second, the State Historic Tax Credits help to make a transformational project like the Bohm Theatre restoration more financially feasible. And though the Bohm is a gem of our downtown now, there are many other buildings, with unique histories, that deserve to be restored.
Third, without the State Historic Tax Credits Albion and other communities across Michigan run the risk of losing out on possible development. Developers are choosing to invest in communities like Toledo, Ohio instead of communities in Albion because Ohio has an active historic tax credit program.
How Can I Help?
As a supporter of Albion, you can help!
- Contact those who represent Albion in the Michigan State House and Senate, Representative Jim Haadsma and Senator Dr. John Bizon. Click here for a sample letter
- Ask our local government leaders to pass a resolution supporting the Legislature’s adoption of the bill
- If you are a part of a civic organization or have connections to your local Downtown Development Authority, Chamber organization, or others, click here for other sample letters.
Will you contact our lawmakers and ask them to vote to reinstate the Michigan Historic Tax Credit? Your action will positively impact Albion’s future.