HB 5178 Summary

• Establishes a state historic preservation tax credit equal to 25% of qualified expenditures for rehabilitation of certified historic resources, available to owners or long-term lessees who spend at least 5-10% of property valuation on rehabilitation work.

• Requires certification from the Michigan State Housing Development Authority that historic resources meet federal Secretary of the Interior's rehabilitation standards (36 CFR part 67) and qualify under specified criteria including National Register listing, contributing status in historic districts, or local historic district designation.

• Allows credits to be carried forward for 10 years if they exceed current tax liability; credits under $250,000 can be refunded at 90% of the excess amount if taxpayer elects to forgo carryover in the year certification is issued.

• Permits credit assignment to other taxpayers on forms prescribed by the department, with assignment certificates required for claiming the credit; assignees subject to recapture provisions if property sold or disposed of within 5 years.

• Imposes recapture requirements on credit claimed if certification is revoked or property disposed of within 5 years of placement in service, with recapture percentages declining from 100% (year 1) to 0% (year 5+), unless taxpayer enters written agreement with authority protecting property status.