MI Impact – MI Historic Tax Credits
Check out the new Mi Impact website for even more information!
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!
Attend the Tax Policy Committee hearing and voice your support!
We also need as many supporters as possible in the room with us for the House Tax Policy Committee hearing. The adage “there is strength in numbers” is true! We would be happy if you would testify, but you do not have to speak. However, we do ask that you put in a card of support at the hearing.
It will be held at 10:30 a.m. May 16, 2018, in Room 521 of the Anderson House Office Building, 124 North Capitol Ave., Lansing.
Please join us if you can! If you can’t, please call or e-mail your legislators!
Recap on what the legislation would do
Before you write your legislator on this pressing matter, do you need a refresher on what the legislation would do and why it’s so important? Well, here you go!
Bills to reinstate the Michigan historic preservation tax credit were introduced last year in the state Senate and state House of Representatives. Senate Bill 469, sponsored by Sen. Wayne Schmidt (R-Traverse City), and House Bill 5178 (Rep. Ben Frederick, R-Owosso) would 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. It consistently proved to be a sound investment for Michigan, returning $11 for every $1 put into the program, and it can be used on both commercial and residential buildings.
This is the way to close funding gaps and take redevelopment of vacant buildings and struggling Main Streets from dream to reality.
The Senate version passed the Senate in December by a 36-2 margin, and now is in the House. More information on this action is provided below.
Oakland County Board of Commissioners unanimously supports reinstating tax credits
On April 19, the Oakland County Board of Commissioners voted unanimously to pass a resolution in support of the reinstatement of the historic preservation tax credits. That means that the residents of every corner of Oakland County, regardless of city or political party, want to see this legislation pass.
Twenty communities in Oakland County have passed local historic district ordinances, demonstrating not only the commitment of communities and residents to preserving our state’s past, but also illustrating they believe in the value of protecting historic downtowns and neighborhoods with character and historic integrity. No other county in the state has as many communities with local historic districts as Oakland, and the MI Impact Coalition appreciates their continued support for preservation!
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.
SB 469 Passes!
We are thrilled to share that on Wednesday, December 13, 2017, SB 469 was passed by the Senate with 36 “Yes” and 2 “No” (Senator Shirkey and Senator Stamas). Thank you so much for your participation in this important initiative. This would not happen without your support and effort. Please contact your Senator to thank them for voting positively on this Bill.
The next step will be moving forward with Members of the House. HB 5178 has been assigned to the House Tax Policy Committee. It has not been heard in the committee yet. Please contact your Representative to share the benefits of the state historic tax credit in their district and ask for their support of HB 5178, particularly if they are on the Tax Policy Committee. We will keep you informed on the updates.
Thank you so much for your support! Happy Holidays.
Hearing in Senate Finance Committee – November 28, 2017
Thank you for your continued support of the efforts to reinstate the State tax credits. We learned today that tomorrow (Tuesday 11/28), there will be a Senate Finance Committee meeting at 2:30 pm and SB 469 is expected to be heard and voted on. If the bill passes out of committee, it will then go on to the full Senate in the future.
For tomorrow, Committee Chairman Jack Brandenburg has a very full agenda in the Senate Finance committee and has asked that testimony be limited to Senator Schmidt and Nancy Finegood. However, the committee is willing to accept cards of support to be added to the committee record.
To express your support:
–If you are able to attend the committee meeting and can submit a card of support, please do so. (Tuesday, 2:30 pm, room 1100, Binsfeld Building, Lansing)
–If you aren’t available to attend the hearing in person and would like to be on the record in support of SB 469, please provide the following information and MHPN will submit cards on your behalf: your name, affiliation/company/organization if you are representing one, address, and email address. MHPN will need this info by 11 am on Tuesday.
–Please contact each member of the Senate Finance Committee. Attached are the profiles of the Senate Finance Committee members. Please contact each member and ask them to support SB 469. If you are a constituent in their district, please identify yourself as such. A sample letter you can adapt for an email is attached, but please customize it. Please also send a copy of your letter to firstname.lastname@example.org. Thank you very much for your support!
Michigan Historic Preservation Network
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 Detroit_7.18.2017
City of East Lansing 4.26.2018
City of Jackson City Council 4.10.2018
City of Kalamazoo 1.2.2018
Village of Leonard_12.11.2017
MotorCities Heritage Area 4.2.2018
Oakland County 4.19.2018
City of Petoskey 5.7.2018
City of Saline City Council and HDC 4.17.2018
City of Traverse City 4.17.2018
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 email@example.com 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