Making the numbers work to finance rehabilitation and adaptive re-use of a historic building is often a struggle for property owners in Michigan.  For this reason, federal and state historic rehabilitation tax credits have played a large part in the revitalization of many historic downtowns and neighborhoods across the state.

Historic rehabs can cost significantly more than building a similar size new building on a vacant “greenfield” site.  Such tax credits have been used by property owners and developers to ‘bridge the gap,’ and have often meant the difference between a vibrant streetscape and a long-vacant eyesore.

These credits can be used to offset the added costs, or to improve return on investment.  Such credits are also transferrable, so a project involving historic rehabilitation may be able to attract additional investment from banks or other institutions looking for tax credits to offset against other income.

More information on specific state historic preservation programs and incentives can be found on the state website (click here).

The State of Michigan has long recognized that rehabbing a historic building for new businesses and residents can provide significant benefits to a community.  Recently, in the midst of a very difficult budget year, the state legislature managed to…
…pass legislation to make this program even more attractive to potential investors in our older communities.

From the State of Michigan website:

On January 13, 2009, 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 City of Ypsilanti is hosting a free workshop on May 28, 2009, where property owners and others can learn more about these new tax credits, and how to take advantage of other available historic preservation incentives.  From the Ypsilanti DDA website:

Historic Rehab Tax Credits 101

Did you know that property owners in the City’s Historic District are eligible to apply for Historic Rehabilitation Tax Credits?   Join us to learn more about this opportunity.

A representative from the State Historic Preservation Office will be offering an inside look at the ins and outs of State and Federal Historic Rehabilitation Tax Credits, as well as the brand new tax credits now available courtesy of new legislation signed into law in January by Michigan Governor Jennifer Granholm.

This presentation is free and open to the public.

Date:  Thursday, May 28, 2009

Time:  4:00pm

Where:  Historic Ypsilanti Freighthouse, Depot Town

100 Rice Street, Ypsilanti, MI  48198  (aka 435 Market Place)

Questions? Call Courtney Miller or Teresa Gillotti at 734-483-9646

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