3581: Historic Preservation Tax Credit (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 3581 calculates and reports the 2024 Historic Preservation Tax Credit for rehabilitation of historic resources in Michigan. It includes basic credits, additional credits for Michigan Business Tax filers, and credit carryforwards and optional refund calculations for
Who files this form
Use Form 3581 to claim the Michigan Historic Preservation Tax Credit. The credit is available to eligible assignees, owners, and long-term lessees of qualified historic resources with rehabilitation projects certified by the State Historic Preservation Office (SHPO).
- Individual income tax and fiduciary filers: Attach the form to MI-1040 or MI-1041. Part 3 is only for rehabilitation plans certified before 2012. The form directs filers with plans certified after 2012 to Form 5803.
- Michigan Business Tax (MBT) filers: Include the form with Form 4567, 4588, or 4590. MBT filers electing a refund of the credit must file Form 4889 instead and do not need Form 3581.
- Unitary business groups: Complete a separate form for each member claiming the credit and include it with the group return.
What you'll need
Include these supporting documents with your 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.
- A copy of the “Michigan Verification of Taxable Credit Eligibility,” if applicable.
- A detailed list of qualified expenditures and the dates paid.
- The Certificate of Completion for the Basic, Enhanced, or Special Consideration credit you claim.
If you received an assigned credit, use the approval letter provided by the assignor to complete line 7. Each individual income tax assignee must include a copy of the letter the assignor received, along with Form 3581 and any required attachments.
Have your SHPO project number, the resource’s State Equalized Value (SEV), and qualified expenditure amounts available. Individual and fiduciary filers also need their 2024 return figures and any Historic Preservation Tax Credit carried forward from 2023.
How to file
File Form 3581 with the applicable Michigan tax return and the required supporting documents:
- Individual income tax: Attach it to Form MI-1040.
- Fiduciary income tax: Attach it to Form MI-1041.
- Michigan Business Tax: Include it with Form 4567, 4588, or 4590. Filers not requesting a refund carry the credit figures to Form 4584. MBT filers electing a refund use Form 4889 instead of Form 3581.
Complete one Form 3581 for each project completed during the tax year. Individual and fiduciary filers skip Part 2 and continue to Part 3. MBT filers stop after Part 2 and do not complete page 2.
The supplied text does not provide a mailing address or e-filing instructions.
Common mistakes
- Completing the wrong part: Part 2 is for MBT filers only. MBT filers must not continue to page 2.
- Filling in lines that should be blank: Individual and fiduciary filers who assigned a portion of the credit to another taxpayer are instructed to leave lines 1 through 6 blank.
- Requesting a refund of a prior-year carryforward: Prior-year carryforwards are not eligible for the optional refund on line 16 or a refund on Form 4889.
- Overlooking possible recapture: If the resource is sold, or its certification of completed rehabilitation or preapproval letter is revoked, less than five years after it is placed in service, a percentage of the credit may be subject to recapture. If the credit was assigned, the assignor is responsible.
- Overlooking the group-wide MBT election: If a unitary business group member holds a certificated credit and wants to claim it, the entire group must elect to remain taxable under the MBT until the credit and its carryforward are used up.
Questions people ask
How is the Basic Credit calculated?
The form uses 25% of qualified expenditures, or 5% if a credit is claimed on federal Form 3468. The Basic Credit is limited to the credit ceiling on the Certificate of Completion. Line 4d must match the amount certified by SHPO.
Can unused credit be carried forward?
Yes. Credit exceeding your tax liability may be carried forward for up to ten years. For individual and fiduciary filers, line 15 calculates the amount available to carry forward to 2025.
Can individual or fiduciary filers choose a refund instead?
For credit certificates issued after December 31, 2008, with a credit amount below $250,000, a taxpayer may elect a refund of 90% of the credit exceeding their tax liability instead of carrying that amount forward. The election must be made in the year the certificate of completed rehabilitation is issued and cannot be revoked. Prior-year carryforwards do not qualify for this option.
Where can I get help?
For tax credit questions, call Treasury at 517-636-4486 for individual income tax or 517-636-6925 for Michigan Business Tax. Treasury forms are available at www.michigan.gov/taxes. For federal and state certification questions, visit www.michigan.gov/shpo.