Michigan Historic Preservation Tax Credit

Historic Preservation Tax Credit
2023, 3581 Historic Preservation Tax Credit
Reset Form
Attachment 22

Michigan Department of Treasury
3581 (Rev. 04-23), Page 1 of 2

2023 MICHIGAN Historic Preservation Tax Credit
Issued under authority of Public Act 281 of 1967 and Public Act 36 of 2007.

INDIVIDUAL INCOME TAX AND FIDUCIARY FILERS ONLY.

Attach to Form MI-1040 or MI-1041.

Filer’s First Name, Middle Initial and Last Name or Name of Estate or Trust

MICHIGAN BUSINESS TAX FILERS ONLY.

Filer’s Social Security No. or FEIN/TR No.

Include with Form 4567, 4588 or 4590.

Taxpayer Name (If Unitary Business Group, Name of Designated Member)

Federal Employer Identification No. (FEIN) or TR No.

Unitary Business Groups: Name of Unitary Business Group Member Reporting on This Form

Federal Employer Identification No. (FEIN) or TR No.

PART 1: ALL FILERS
1.

Project Number (if multiple projects, see instructions) ...................................

1.

2.

State Equalized Value (SEV). Enter the SEV of the resource ......................

2.

3.

Qualified Expenditures. Enter the qualified expenditures for the rehabilitation of the historic resource.............

4.

Basic Credit. Attach Certificate of Completion. Complete line 4a or 4b, whichever applies, and continue to 4c.

00
3.

00

a. Multiply line 3 by 25% (0.25) ............................................................................................................................

4a.

00

b. If credit claimed on federal Form 3468, multiply line 3 by 5% (0.05)................................................................

4b.

00

c. Credit ceiling from Certificate of Completion ....................................................................................................

4c.

00

d. Basic credit. Enter lesser of lines 4a or 4b, whichever applies, and 4c.
Michigan Business Tax filers: If not assigning credit, carry to Form 4584, line 16. ...........................................

4d.

00

a. Percentage from Certificate of Completion.......................................................................................................

5a.

%

b. Multiply line 3 by line 5a ...................................................................................................................................

5b.

00

c. Credit ceiling from Certificate of Completion ....................................................................................................

5c.

00

d. Enhanced credit. Enter the lesser of lines 5b or 5c and, if not assigning, carry to Form 4584, line 17 ..........

5d.

00

a. Percentage from Certificate of Completion.......................................................................................................

6a.

%

b. Multiply line 3 by line 6a ...................................................................................................................................

6b.

00

c. Credit ceiling from Certificate of Completion ....................................................................................................

6c.

00

d. Special Consideration credit. Enter the lesser of lines 6b or 6c and, if not assigning, carry to Form 4584,
line 21 ................................................................................................................................................................

6d.

00

Individual Income Tax and Fiduciary Filers: Skip to Part 3.

PART 2: MICHIGAN BUSINESS TAX FILERS ONLY
5.

6.

Enhanced Credit. Attach Certificate of Completion.

Special Consideration Credit. Attach Certificate of Completion.

Michigan Business Tax Filers: Stop here; do not continue to page 2.

+

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2023 Form 3581, Page 2 of 2

IIT/Fiduciary Filer Social Security, FEIN or TR No.

PART 3: INDIVIDUAL INCOME TAX AND FIDUCIARY FILERS WITH REHABILITATION PLANS CERTIFIED BEFORE
2012 ONLY. For plans certified after 2012, see Form 5803.
7.

Enter assigned credit (see instructions) ................................................................................................................

7.

00

8.

Carry forward Historic Preservation Tax Credit from 2022 (individual income tax and fiduciary filers only)..........

8.

00

9.

Historic Preservation Tax Credit. Add line 4d to lines 7 and 8. Carry this amount to line 13.............................

9.

00

Individual Income Tax filers - Carry the amount from line 9 to Form MI-1040, line 19a.
Fiduciary Income Tax filers - Carry the amount from line 9 to Form MI-1041, line 15a.

Tax Liability Limitation

Complete lines 10 through 16 to determine the amount of the credit needed to offset the current tax liability, and the amount, if any to carry forward to the
next year or to be refunded. Credit, in excess of the current liability, may be carried forward for up to ten years to offset a future liability.
Tax from your 2023 MI-1040, line 17, or 2023 MI-1041, line 13 ............................................................................

10.

00

11. Total nonrefundable credits from your 2023 MI-1040, line 18b or 2023 Form MI-1041, line 14b ..........................

11.

00

12.

Subtract line 11 from line 10. If less than zero, enter zero ....................................................................................

12.

00

13.

Enter the amount from line 9 above ......................................................................................................................

13.

00

14.

Historic Preservation Tax Credit. Enter the lesser of line 12 or line 13. Carry the amount from
line 14 to your 2023 MI-1040, line 19b or to your 2023 Form MI-1041, line 15b...................................................

14.

00

15.

Carry forward to 2024. If line 12 is less than line 13, subtract line 12 from line 13.
This is the amount you may carry forward. If you want a refund, go to line 16 .....................................................
Optional Refund Amount. Complete line 16 only if you want a refund of the amount on line 15.

15.

00

a. If line 12 is equal to or greater than line 8, multiply line 15 by 90% (0.9) and enter here and on your 2023
MI-1040, line 28, or 2023 MI-1041, line 18......................................................................................................

16a.

00

b. If line 12 is less than line 8, subtract the difference between line 8 and line 12 from line 15 and multiply the
difference by 90% (0.9). Enter here and on your 2023 MI-1040, line 28 or 2023 MI-1041, line 18.....................

16b.

00

c. If line 8 is greater than line 12, enter the difference. This is your carry forward from 2023 to 2024....................

16c.

00

10.

16.

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2023 Form 3581, Page 3

Purpose

Instructions for Form 3581
Michigan Historic Preservation Tax Credit

To allow the eligible taxpayer to claim the Michigan Historic
Preservation Tax Credit.
The credit is reported here and then carried to the appropriate
form, according to the type of taxpayer. Individual and
Fiduciary filers carry the figures to the Michigan Individual
Income Tax Return (Form MI-1040), and the Fiduciary Income
Tax Return (Form MI-1041), respectively. Michigan Business
Tax (MBT) filers not asking for a refund of the credit carry
the figures from this form to the MBT Election of Refund
or Carryforward of Credits, and Calculation of Historic
Preservation and Brownfield Redevelopment Carryforward
(Form 4584). MBT filers electing to claim a refund of the credit
must file the Request for Accelerated Payment for the Brownfield
Redevelopment Credit and the Historic Preservation Credit
(Form 4889), and do not need to file this form.

What Is the Historic Preservation Tax Credit?
NOTE: Historic rehabilitation plans will no longer be certified
after December 31, 2011.
This credit provides tax incentives for homeowners,
commercial property owners and businesses to rehabilitate
historic resources located in the State of Michigan.
If the credit exceeds the taxpayer’s tax liability, the balance
may be carried forward up to ten years. However, for projects
for which a certificate of completed rehabilitation is issued
for a tax year beginning after December 31, 2008, and for
which the credit amount allowed is less than $250,000, a
qualified taxpayer may elect to forgo the carry forward
period and receive a refund of 90 percent of the amount that
exceeds the qualified taxpayer’s tax liability. Such an election
must be made in the year that a certificate of completed
rehabilitation is issued and is irrevocable. The credit, which is
generally nonrefundable, must be claimed in the year that the
certification of completed rehabilitation of the historic resource
was issued.
NOTE for MBT filers: Beginning January 1, 2012, the historic
preservation credit is available to the extent that a taxpayer had
a Part 2 approval, approved rehabilitation plan, approved high
community impact rehabilitation plan or preapproval letter
before by December 31, 2011, but has not fully claimed the
credit before January 1, 2012.
Also note:
• Credits carried forward from a prior year(s) are not eligible
to be refunded on Form 4889;
• Beginning January 1, 2012, certain assigned credits are
eligible to be refunded on Form 4889;
• If a taxpayer elects to claim a certificated historic
preservation credit in the year in which the credit is available
the credit becomes taxable under the MBT until the qualifying
credit and any carryforward of the credit are extinguished.

For more information see the instructions for Form 4889 and
Form 4584, and General Instructions in the MBT Forms and
Instructions for Standard Taxpayers (Form 4600).
A qualified taxpayer may assign all or a portion of its credit to
any assignee. The credit assignment cannot be revoked, but an
assignee may subsequently reassign a credit, or any portion of
an assigned credit, to one or more assignees. With the exeption
stated below, both the initial assignment of the credit by the
qualified taxpayer to the first assignee(s) and the subsequent
reassignment by the first assignee(s) to reassignee(s) must
be done in the tax year in which the certificate of completed
rehabilitation is issued.
For Basic, Enhanced and Special Consideration credits for
which a certificate of completed rehabilitation is issued for a
tax year beginning after December 31, 2007 and ending before
January 1, 2012, an assignment by a qualified taxpayer of all
or any portion of a credit allowed may be made within the
12 months immediately succeeding the tax year in which the
certificate of completed rehabilitation is issued.
Qualified taxpayers may receive a Basic Michigan Credit
equal to 25 percent of their qualified expenditures. For
taxpayers eligible for the federal Rehabilitation Credit under
Internal Revenue Code (IRC) § 47(a)(2), the Michigan credit
is 25 percent of the qualified expenditures less the amount
of the federal credit available. For example, if the amount of
the federal credit available is 20 percent, the state credit is 5
percent of the qualified expenditures. The State Historic
Preservation Office (SHPO) provides the form and approves the
assignment or reassignment of the credit.
NOTE: An assignee may claim an accelerated historic
preservation certificated credit as a refundable credit on Form
4889 if the assignor had a preapproval letter by January 1,
2012, and a certificate of completion, assignment certificate,
or component completion certificate is issued for a tax year
beginning after December 31, 2011.
A qualified MBT taxpayer may qualify for one of two
additional credits if a taxpayer had a Part 2 approval, approved
rehabilitation plan, approved high community impact
rehabilitation plan, or preapproval letter before January 1, 2012.
The Enhanced Credit is equal to a percentage of qualified
expenditures, not to exceed 15 percent, established in a
preapproval letter issued by SHPO.
The Special Consideration Credit is equal to a percentage
of qualified expenditures, not to exceed 15 percent, recorded
on the Certificate of Completion awarded by SHPO. Special
Consideration Credits are granted to rehabilitation plans
expected to have a high community impact and to have
significantly greater historic, social, and economic impact than
those plans that earn Enhanced Credits. The maximum amount
of Special Consideration Credit that may be claimed during
a tax year is $3,000,000 per project, with the excess being
carried forward until used up.

2023 Form 3581, Page 4

NOTE: If the resource is sold or the certification of completed
rehabilitation or preapproval letter is revoked less than five years
after the historic resource is placed in service, a percentage of
the credit may be subject to recapture. If the credit has been
assigned, the recapture is the responsibility of the assignor.

Eligibility
The Michigan Historic Preservation Credit is available to
eligible assignees, owners or long-term lessees of qualified
historic resources who undertake rehabilitation projects that are
certified by SHPO.
Property owners undertaking rehabilitation projects on
depreciable properties that qualify for the federal Rehabilitation
Credit must first apply for the federal credit.

Special Instructions for Unitary Business Groups
An entity reporting a Historic Preservation Credit as a member
of an MBT Unitary Business Group (UBG) must calculate
the credit at the member entity level. The credit may then be
applied to the tax liability of the UBG.
Include this form as part of the unitary return. If there are
multiple historic credits issued under separate account
numbers, include multiple forms with the UBG return.

Line-by-Line Instructions
Lines not listed are explained on the form.
Name and Account Number: Enter the name and account
number as reported on page 1 of the applicable MBT annual
return (either the MBT Annual Return (Form 4567) for standard
taxpayers, MBT Insurance Company Annual Return for
Michigan Business and Retaliatory Taxes (Form 4588) or the
MBT Annual Return for Financial Institutions (Form 4590)).
UBGs: Complete one form for each member for whom this
credit applies. Enter the Designated Member (DM) name in the
Taxpayer Name field and the specific member of the UBG for
which this form is filed on the line below.
NOTE: If a member of a UBG holds a certificated historic
preservation credit and wishes to claim the credit, the entire
group must elect to remain taxable under the MBT until the
credit and any carryforward of that credit are extinguished.
IIT/Fiduciary Filers only: If a portion of the credit was
assigned to another taxpayer, leave lines 1 through 6 blank.
PART 1: ALL FILERS
To be completed by all filers claiming a Michigan Historic
Preservation Credit.
Line 1: Enter the project number assigned by SHPO.
Complete one Form 3581 for each project completed during the
tax year.
Line 3: For projects for which a preapproval letter was issued
prior to January 1, 2009, the expenditures for the rehabilitation
of a historic resource must be paid not more than five years
after the certification of the rehabilitation plan. For projects
for which a preapproval letter was issued after December 31,
2008, only those expenditures that are paid or incurred during
the time periods prescribed for the credit under IRC § 47(a)(2)

and any related U.S. Treasury regulations will be considered
qualified expenditures.
Line 4: The Basic Historic Preservation Credit is equal
to either 5 percent or 25 percent of qualified expenditures,
depending on the Certificate of Completion awarded by
SHPO, but is limited by the maximum credit enumerated on
the Certificate. The credit is the lesser of the percentage of
qualified expenditures or the credit ceiling established by
SHPO. The amount of the credit calculated on line 4d must
equal the amount certified by SHPO on the verification letter or
the approved “Part 3 — Certification of Completed Work” form
received for the project.
Line 4d. MBT taxpayers only, carry the amount on line 4d to
Form 4584 line 16 if not assigning the credit. If assigning any
portion of the credit to yourself, carry the amount assigned to
yourself to Form 4584, line 10, instead.
PART 2: MICHIGAN BUSINESS TAX FILERS ONLY
Line 5: The Enhanced Historic Preservation Credit is equal
to a percentage of qualified expenditures, not to exceed 15
percent, recorded on the Certificate of Completion awarded
by SHPO, but is limited by the maximum credit enumerated
on the Certificate. The credit is the lesser of the percentage
of qualified expenditures or the credit ceiling established by
SHPO. The amount of the credit calculated on line 5d must
equal the amount certified by SHPO on the verification letter or
the approved “Part 3 — Certification of Completed Work” form
received for the project.
Line 5d. Carry the amount on line 5d to Form 4584, line 17 if
not assigning the credit. If assigning any portion of the credit
to yourself, carry the amount assigned to yourself to line 10
instead.
Line 6: The Special Consideration Historic Preservation
Credit is equal to a percentage of qualified expenditures, not to
exceed 15 percent, recorded on the Certificate of Completion
awarded by SHPO, but is limited by the maximum credit
enumerated on the Certificate. The credit is the lesser of the
percentage of qualified expenditures or the credit ceiling
established by SHPO. The amount of the credit calculated
on line 6d must equal the amount certified by SHPO on the
verification letter or the approved “Part 3 — Certification of
Completed Work” form received for the project.
Line 6d: If line 6d is $3,000,000 or less carry the amount on
line 6d to Form 4584, line 21, or if any part of this credit is to
be assigned, carry the amount on line 6d to Form 4584 line 21
if not assigning the credit. If assigning any portion of the credit
to yourself, carry the amount assigned to line 13 instead. If line
6d is greater than $3,000,000, you should carry $3,000,000
or the portion of the credit remaining to line 13 as well. The
Special Consideration credit must be assigned in increments
of $3,000,000 per tax year even if that assignment is to the
assignor.
PART 3: INDIVIDUAL INCOME TAX/FIDUCIARY
FILERS ONLY
Line 7: If assigned the credit, enter the amount of the assigned
credit from the approval letter provided by the assignor.

2023 Form 3581, Page 5

Lines 10-14: Individual and Fiduciary Income Tax filers,
calculate the amount of the Michigan Historic Preservation Tax
Credit needed to offset the taxpayer’s tax liability. Carry the
amount from line 14 to the 2023 Form MI-1040, line 19b.
Line 15: Credit in excess of the tax liability may be carried
forward and used in subsequent years, not to exceed ten years.
Line 16: For credit certificates issued after December 31,
2008, that are less than $250,000, a taxpayer may elect to
forego the carry forward and receive a refund of 90 percent
of the amount of the credit that exceeds the tax liability.
The election to receive a refund must be made in the year
that a certificate of completed rehabilitation is issued and is
irrevocable. Any carry forward from prior years is not subject
to this option. If you choose to receive a refund of the excess
credit amount, complete line 16.

Other Supporting Forms and Schedules
To claim this credit, include Form 3581 with the taxpayer’s
Michigan Individual Income Tax Return (Form MI-1040),
Fiduciary Income Tax Return (Form MI-1041), Michigan
Business Tax Annual Return (Form 4567), Insurance Company
Annual Return for Michigan Business and Retaliatory Taxes
(Form 4588), or Michigan Business Tax Annual Return for
Financial Institutions (Form 4590), and include the documents
listed below with the return:
• Historic Preservation Certification Application, Part 1,
Evaluation of Eligibility, signed and dated
• Historic Preservation Certification Application Part 3,
Certification of Completed Work, signed and dated
• Copy of “Michigan Verification of Taxable Credit
Eligibility,” if applicable
• A detailed list of qualified expenditures and dates paid.
Each IIT assignee must include a copy of the letter the assignor
received and a completed Form 3581 with any required
attachments to their Form MI-1040, or Form MI-1041.

Additional Information
For questions regarding the tax credit, contact Treasury:
• Individual Income Tax: 517-636-4486
• Michigan Business Tax: 517-636-6925
To obtain Treasury forms, visit www.michigan.gov/taxes.
For questions regarding federal and state certification see
the State Historic Preservation Office (SHPO) website
www.michigan.gov/shpo.