MI Impact – MI Historic Tax Credits
Check out the Mi Impact website for even more information!
December 28, 2018
Dear Supporters of the Michigan State Historic Tax Credit Reinstatement:
Michigan Historic Preservation Network and MI Impact Coalition wish you a wonderful New Year! We are looking forward to reinstating the Michigan State Historic Tax Credit in 2019 with the support of Governor-Elect Gretchen Whitmer.
This was a question from MLive to Governor-Elect Gretchen Whitmer, and her answer :
Are you considering more programs specifically, or would you use the tools that are in place right now?
I think using the tools that are in place. But when the governor came in, he got rid of the historic building credits. He didn’t embrace the brownfield redevelopment credits. … They serve an important public purpose, putting unusable property back into use, or keeping a historic building in a lot of our downtowns that need revitalization, making that a priority. Those are two obvious examples, in my mind, of ways that the public benefits from some of this economic development policy.
We also wanted to share this John Gallagher article in yesterday’s Free Press:
We anticipate working with you all in early 2019 as the historic tax credit bills are re-introduced and passed.
Please Save the Date for the Michigan Historic Preservation Lobby Day on Tuesday, February 26th, 2019 in Lansing. We will need you to be in Lansing to visit and educate your Legislators about the value of the credits to your community.
Thanks for your passion, hard work and support!
Happiest of New Years!
On December 20, 2018, the Michigan House refused to vote on SB 469 which would reinstate Michigan’s Historic Preservation Tax Credit, despite overwhelming support in both chambers and from across the state.
Senate Bill 469, offered a credit of up to 25 percent of rehabilitation expenses against state income tax liability. The legislation was supported by the MI Impact Coalition, a group of business, real estate and political leaders and preservationists from every corner of Michigan. It is led by the Michigan Historic Preservation Network.
MHPN Executive Director Nancy Finegood issued the following statement:
“We are beyond disappointed that the House refused to allow a vote on the state historic preservation tax credit, especially given the overwhelming support this legislation had in both chambers of the Legislature and from voters in communities in every corner of Michigan. This is about more than just saving the culture and history of our great state – it is about providing Michigan communities with a powerful development tool that will protect the past while fueling the future. The credit would have given Michigan back the keys to an economic engine that would drive millions of dollars in economic development across state, create jobs, save our architectural treasures for future generations and put beautiful but vacant historic properties back on tax rolls. To have to start the legislative process over is frustrating, but we look forward to working with Gov.-elect Whitmer and leadership in both houses and both sides of the aisle to finally get this done for Michigan.”
About the tax credit
The legislation passed the Senate late last year, 36-2, and the House Tax Policy Committee by an 8-2 vote this summer, showing not only broad bipartisanship but also support from across Michigan.
Michigan’s historic tax credit was originally introduced in 1999 but eliminated in 2011, along with other tax credits – victims of the state’s budget crises. Michigan is now one of only 15 states that does not offer tax credits to help save historic properties.
When Michigan had the historic tax credit, it consistently proved to be a sound investment for Michiganders: Every $1 spent on historic preservation yielded $11 in direct economic impact. Over the previous Michigan historic tax credit’s 12-year lifespan, the credits leveraged $251 million in federal tax credits and helped create 36,000 jobs while incentivizing $1.46 billion in direct rehab expenses.
Though we expect similar support in the House to what we’ve experienced in the state Senate and the House Tax Policy Committee, we still need you to let your representatives know that you want the historic tax credit back on the books.
With the Legislature going on summer recess, many legislators will be holding office and coffee hours at locations throughout their districts. These informal meetings are great opportunities to meet with your representative and tell him or her that you want them to support reinstating Michigan’s Historic Preservation Tax Credit!
Not sure what to say? Go to MIImpact.com or MHPN.org for sample letters and facts that you can use!
Save Our Historic Tax Credit, filmed May 17, 2018, at the Proactive Preservation Conference, East Lansing, Michigan
CALL TO ACTION: House tax policy committee to take up preservation tax credit legislation
The major news is that we finally have a hearing date in the House Tax Policy Committee.
Chairman Jim Tedder, R-Clawson, has said he plans to take up the legislation on May 16. This means that we need your help to ensure we make it to the floor of the House. NOW is the time to write your legislators and tell them that you want Michigan to bring back the historic preservation tax credit.
Though we are emboldened by the response and support that we have been getting, this is not a slam dunk, and we need your continued support. This is especially urgent if you live in one of the areas represented by the members of the Tax Policy Committee.
Please contact the committee members and tell them you want them to vote in favor of Senate Bill 469 and reinstating Michigan’s historic preservation tax credit!
Jim Tedder (R-Clarkston) Committee Chair, 43rd District
· PHONE: 517-373-0615; E-MAIL: JimTedder@house.mi.gov
David Maturen (R-Vicksburg) Majority Vice-Chair, 63rd District
· PHONE: 517-373-1787; E-MAIL: DavidMaturen@house.mi.gov
Martin Howrylak (R-Troy) 41st District
· PHONE: 517-373-1783; E-MAIL: MartinHowrylak@house.mi.gov
Eric Leutheuser (R-Hillsdale) 58th District
· PHONE: 517-373-1794; E-MAIL: EricLeutheuser@house.mi.gov
Peter Lucido (R-Shelby Township) 36th District
· PHONE: 517-373-0843; E-MAIL: PeterLucido@house.mi.gov
Hank Vaupel (R-Fowlerville) 47th District
· PHONE: 517-373-8835; E-MAIL: HankVaupel@house.mi.gov
Steven Johnson (R-Wayland) 72nd District
· PHONE: 517-373-0840; E-MAIL: StevenJohnson@house.mi.gov
Bronna Kahle (R-Adrian) 57th District
· PHONE: 517-373-1706; E-MAIL: BronnaKahle@house.mi.gov
James Lower (R-Cedar Lake) 70th District
· PHONE: 517-373-0834; E-MAIL: JamesLower@house.mi.gov
Wendell Byrd (D-Detroit) Minority Vice-Chair, 3rd District
· PHONE: 517-373-0144; E-MAIL: WendellByrd@house.mi.gov
Sheldon Neeley (D-Flint) 34th District
· PHONE: 517-373-8808; E-MAIL: SheldonNeeley@house.mi.gov
Jim Ellison (D-Royal Oak) 26th District
· PHONE: 517-373-3818; E-MAIL: JimEllison@house.mi.gov
Tenisha Yancey (D-Harper Woods) 1st District
· PHONE: 517-373-0154; E-MAIL: TenishaYancey@house.mi.gov
Even if you don’t live in one of these areas, we still ask that you contact your legislator. Don’t know your legislator or not listed above? Find him or her here.
Not sure what to write? Go to MIImpact.com for some sample letters that you can use to create your own!
Tell your City Council and mayor to pass a resolution in support of the tax credit!
Communities all over Michigan have passed resolutions supporting the tax credit, but we still need more to show the vast statewide support for this legislation.
You can help us by asking your local leaders to pass a city resolution in support of the historic preservation tax credit. It’s also easy! Either download a sample resolution from MIImpact.com or include this link in your e-mail to your local representatives!
The more we show our representatives that the communities they represent want this legislation, the more likely we get approved!
Follow us on social media
If you haven’t already, follow us on social media and please share our posts with your friends and followers. We need to show lawmakers that there is widespread support for bringing back this invaluable development and preservation tool! You can find us on Facebook at www.facebook.com/miimpact2018, on Twitter at @MIImpact2018 and on Instagram at @MIImpact. We have also launched a website, www.miimpact.com, where we will be hosting documents and information that you are invited to read and share.
Help us spread the word about this legislation by sharing your photos and stories of buildings that have been saved thanks to the historic tax credit or could be saved if it was revived. Send your photos and stories to email@example.com.
Reinstatement of Historic Preservation Tax Credit Introduced in Michigan Senate and House
A bill to reinstate the Michigan Historic Preservation Tax Credit has been introduced both in the State Senate and in the State House of Representatives. Senate Bill 469, sponsored by Sen. Wayne Schmidt (R-37, Traverse City), and House Bill 5178 (Rep. Ben Frederick, sponsor) would reinstate the popular program that offers a credit of up to 25 percent of rehabilitation expenses against state income tax liability.
The tax credit, which was an integral part of building restoration projects from Detroit to Menominee, was phased out in 2011 as part of the Snyder administration’s plan to eliminate most tax credits. Over the program’s 12-year life, the credits leveraged $251 million in federal tax credits, led to the creation of 36,000 jobs, and incentivized $1.46 billion in direct rehab expenses.
These bills will bring back one of the most valuable tools to level the financial playing field for historic preservation projects – and the only tool available for those restoring owner-occupied homes. Historic preservation projects have been a key part of nearly every successful “revitalization” story in Michigan, and have helped make Michigan places more attractive, more economically viable, and more emotionally engaging with both residents and visitors. This tax credit is a powerful tool to save historic resources and improve communities.
The economic impacts of this historic preservation economic development tool are well documented:
- Each $1.00 of credit issued leverages $11.37 in direct economic impact.
- The state historic preservation tax credit has leveraged $251 million in federal historic tax credits. These are federal dollars coming back into Michigan’s economy!
- Michigan historic tax credits make formerly impossible projects feasible. They put underutilized and core urban real estate back on local and state tax rolls.
These programs are used to fill gaps in the financing of rehabilitation real estate projects and are issued only after rehabilitation expenses are incurred. Therefore, projects generate significant economic impact and state and local tax revenue before the credits are issued.
Michigan’s historic tax credit program is one of the state’s most useful tools for revitalizing older communities. The credits make rehabilitation projects possible, and those projects drive economic growth in Michigan.
Read the full text of House Bill 5178
Coalition Kick-off Materials
Support the effort – complete the MI Impact Coalition Commitment Form Today!
MI Impact Coalition_11.13.2017
City of East Lansing 4.26.2018
City of Jackson City Council 4.10.2018
City of Kalamazoo 1.2.2018
MotorCities Heritage Area 4.2.2018
City of Saline City Council and HDC 4.17.2018
City of Traverse City 4.17.2018
Washtenaw County 6.6.2018
Coalitition to Reinstate Michigan Historic Preservation Tax Credit
As you know, the Michigan Historic Preservation Tax Credit was an important tool to drive economic revitalization and leverage investment in historic properties throughout Michigan. That credit was eliminated in 2011, but Senator Wayne Schmidt has introduced
legislation to reinstate it (SB 469).
Please join us for lunch Wednesday, November 8, at noon to kick off the coalition to reinstate the Michigan Historic Preservation Tax Credit. Each of you plays a strategic role in the passage of this critical legislation–please join us to learn how you can support the effort. Please RSVP to firstname.lastname@example.org by Fri 11/3.
Wednesday, 11/8/17, 12:00 noon
Michigan Municipal League Offices
Christman Building, 1st Floor
208 N. Capitol Ave, Lansing 48933
We look forward to seeing you there! If you are unable to join us 11/8, but would still like to be involved in the effort, please let us know that as well. Thank you!
June 23, 2017
Michigan Historic Preservation Network Backs Tax Credit Legislation
LANSING – The Michigan Historic Preservation Network has announced its support of a Michigan Senate bill that will revive the state’s historic preservation tax credit. The bill, SB 469, sponsored by Sen. Wayne Schmidt (R-Traverse City) [co-sponsored by Senators Horn, Zorn, O’Brien, and Hertel] would effectively reinstate the tax credit program Michigan had in place from 1999 until 2011.
The bill offers a tax credit of up to 25 percent of qualified rehabilitation expenses for contributing commercial and residential properties located within a local historic district. As it did previously it offers a supplemental five percent credit to the 20 percent federal historic preservation credit for income producing properties, and is the only credit available for owner-occupied historic homes.
“From Mackinac Island to the district surrounding Detroit’s Fox Theatre, historic preservation projects have helped make Michigan places more attractive, more economically viable and more emotionally engaging with both residents and visitors,” says Nancy Finegood, executive director of the Michigan Historic Preservation Network. “From 1999 until 2011, many of those success stories were made possible by the Michigan Historic Preservation Tax Credit.”
“Making a historic building compliant with contemporary codes is often more costly than new construction. So for far too long, the only ‘incentives’ to encourage preservation were aesthetic and historic. This program offers a tangible economic incentive, as well … one that was used very successfully for more than a decade.”
Over its 11-year life, the program leveraged $71 million in credits to generate more than $1.46 billion in investment in Michigan rehabilitation projects. It also leveraged an additional $219 million in federal tax credits, and led to the creation of 36,000 jobs.
Among the projects the credit helped enable were the Nisbett Building in Big Rapids, the Mutual Building in Lansing, the Book Cadillac Hotel and Vernor Apartments in Detroit, the Temple Theatre in Saginaw and the Durant Apartments in Flint.
Finegood says MHPN, a statewide preservation advocacy group, strongly supports Senator Schmidt’s bill. “This will once again help make the historic properties that give our communities their unique character and sense of place economically viable.”
Draft Resolution Template for Michigan Entities to Express their Support of SB 469
Action Alert sent 7.17.2017
Want to reach out to your Michigan State Senator? Check out the Find Your Senator Page.
LEARN MORE ABOUT THIS ISSUE:
Could Michigan See a New Historic Preservation Tax Credit? (Please?) – Michigan Future blog, August 2, 2017