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…
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