HB 5117 Summary

• Establishes a 25% state historic preservation tax credit for qualified individuals who rehabilitate historic resources, with separate provisions for projects without pre-2012 certification and those certified after December 31, 2017.

• Allows credits to be claimed against Michigan income tax liability, with unused credits carried forward for up to 10 years; credits under $250,000 may be refunded at 90% of the excess amount.

• Requires certification from the Michigan State Housing Development Authority that rehabilitated historic resources meet federal Secretary of the Interior standards and qualify as historic districts, individually listed properties, or properties in designated local historic districts.

• Permits qualified taxpayers to assign credits to other parties on an irrevocable basis in the year a certificate of completed rehabilitation is issued; assignees may subsequently reassign credits.

• Implements recapture provisions requiring partial or full credit payback (scaled from 100% to 0% over 5 years) if certified properties are sold or disposed of within 5 years, unless a written preservation agreement is executed with the authority.