3581: Historic Preservation Tax Credit (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 3581 calculates the 2025 Historic Preservation Tax Credit for qualified expenditures to rehabilitate a historic resource. It includes basic, enhanced and special consideration credit calculations, plus sections for individual income tax and fiduciary filers to repor
Who files this form
Form 3581 is used to report the Michigan Historic Preservation Tax Credit by:
- Individual income tax and fiduciary filers, who attach it to Form MI-1040 or MI-1041.
- Michigan Business Tax filers, who include it with Form 4567, 4588 or 4590.
Part 3 is only for individual income tax and fiduciary filers with rehabilitation plans certified before 2012. For plans certified after 2012, the form directs filers to Form 5803.
What you'll need
Have the following information and documents ready:
- Your name and Social Security number, FEIN or TR number, as applicable. Unitary business groups also provide the reporting member’s name and FEIN or TR number.
- The project number, the historic resource’s State Equalized Value (SEV), and qualified rehabilitation expenditures.
- The Certificate of Completion, which must be attached. It supplies the credit ceiling and, for enhanced and special consideration credits, the applicable percentage.
- Whether a credit was claimed on federal Form 3468, which affects the basic credit calculation.
Individual income tax and fiduciary filers completing Part 3 also need assigned credit amounts, any Historic Preservation Tax Credit carried forward from 2024, and tax and nonrefundable credit amounts from their 2025 MI-1040 or MI-1041.
How to file
Complete Part 1 and attach the Certificate of Completion.
Individual income tax and fiduciary filers: Skip Part 2 and complete Part 3 if your rehabilitation plan was certified before 2012. Attach Form 3581 to your 2025 MI-1040 or MI-1041.
- Transfer line 9 to MI-1040, line 19a, or MI-1041, line 15a.
- Complete the tax liability limitation calculation and transfer line 14 to MI-1040, line 19b, or MI-1041, line 15b.
- If choosing an optional refund, follow line 16 and enter the applicable refund amount on MI-1040, line 29, or MI-1041, line 18.
Michigan Business Tax filers: Complete the applicable credit calculations on page 1 and include Form 3581 with Form 4567, 4588 or 4590. If not assigning the credit, transfer the basic, enhanced and special consideration credits to Form 4584, lines 16, 17 and 21, respectively. Do not complete page 2.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Do not leave out the Certificate of Completion. The form requires it for the basic, enhanced and special consideration credits.
- Individual income tax and fiduciary filers should skip Part 2, which is for Michigan Business Tax filers only.
- Michigan Business Tax filers must stop after page 1 and must not continue to page 2.
- Do not use Part 3 for plans certified after 2012. The form directs those filers to Form 5803.
- Complete line 16 only if you want a refund of the amount on line 15.
Questions people ask
How is the basic credit calculated?
Multiply qualified rehabilitation expenditures on line 3 by 25%, or by 5% if a credit was claimed on federal Form 3468. The basic credit is the smaller of that result and the credit ceiling on the Certificate of Completion.
Who can use the enhanced and special consideration credit sections?
Part 2 is for Michigan Business Tax filers only. Each credit uses the percentage and credit ceiling from the Certificate of Completion.
Can unused credit be carried forward?
For individual income tax and fiduciary filers completing Part 3, credit exceeding the current tax liability may be carried forward for up to ten years to offset a future liability. Line 15 calculates the amount that may be carried forward to 2026.
Can I choose a refund instead?
Part 3 provides an optional refund calculation on line 16. Depending on whether line 12 is at least as large as the 2024 carryforward on line 8, the form applies 90% to either line 15 or an adjusted amount. If line 8 exceeds line 12, line 16c identifies the difference as a carryforward from 2025 to 2026.