5803: Historic Preservation Tax Credit for Plans Approved after December 31, 2020 (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 5803 calculates the 2024 Historic Preservation Tax Credit for plans approved after December 31, 2020. It reports qualified rehabilitation expenditures, assigned credits or flow-through entity shares, and carryforwards, and determines the credit usable against curren
Who files this form
Use 2024 Form 5803 to claim the Michigan Historic Preservation Tax Credit for plans approved after December 31, 2020. Include it with your Michigan individual income tax return, Form MI-1040, or fiduciary income tax return, Form MI-1041.
The credit is available to eligible assignees and owners or long-term lessees of qualified historic resources in Michigan for rehabilitation projects certified by the State Historic Preservation Office (SHPO). Qualified taxpayers must have qualified expenditures that meet the credit’s threshold.
For plans approved before 2012, see Form 3581 instead.
What you'll need
Include these supporting documents with your return:
- Certificate of Completed Rehabilitation, Part 3 of the SHPO application.
- Certification of historic significance, Part 1 of the SHPO application.
- Rehabilitation Plan, Part 2 of the SHPO application.
- If you received an assigned or reassigned credit, the completed assignment or reassignment certificate.
- For flow-through entity members, a copy of the entity’s certificate of completion and Schedule K-1 with its notes, or other documents supporting the credit claimed.
You will also need the SHPO project number, the resource’s State Equalized Value (SEV), qualified expenditures shown on the Certificate, the credit reservation from Part 2, and any eligible credit carryforward from 2023.
How to file
- Complete one Form 5803 for each project completed during the tax year. Enter the project number assigned by SHPO.
- Calculate the basic credit using the smaller of 25% of qualified expenditures or the credit reservation from Part 2 of the SHPO application.
- Add any assigned credit, proportional flow-through entity credit, and eligible 2023 carryforward as directed on the form.
- Transfer line 7 to your 2024 MI-1040, line 19a, or MI-1041, line 15a.
- Complete lines 8 through 13 to determine the credit allowed against your current tax liability and any carryforward to 2025. Transfer line 12 to MI-1040, line 19b, or MI-1041, line 15b.
- Attach Form 5803 and the required supporting documents to your MI-1040 or MI-1041.
Common mistakes
- Combining projects on one form: Complete a separate Form 5803 for each project completed during the tax year.
- Entering a Form 3581 carryforward on line 6: The instructions specifically say not to do this. See Form 3581 for a plan certified before 2012.
- Failing to combine credit totals on the return: If you complete multiple Forms 5803, or also complete Form 3581, add the credit totals and report them on MI-1040, line 19, or MI-1041, line 15.
- Waiting too long to claim the credit: The initial claim must be made within five years after the Certificate is issued. Otherwise, the Certificate is no longer valid and the taxpayer is no longer eligible for that plan. Assigned credits have additional timing restrictions.
Questions people ask
Is this credit refundable?
No. It is nonrefundable. Credit exceeding your tax liability may be carried forward for up to 10 years or until used up.
Can I assign the credit to someone else?
Yes. A qualified taxpayer may assign all or part of the credit. The assignment cannot be revoked. An assignee may subsequently reassign all or part of the assigned credit. The initial assignment and subsequent reassignment must be completed and claimed in the tax year the Certificate is issued. SHPO provides the form and approves assignments and reassignments.
Could I have to repay part of the credit?
A percentage of the credit may be subject to recapture if the resource is sold or disposed of, or the Certificate is revoked, less than five years after the Certificate was issued. For an assigned credit, recapture is the responsibility of the qualified taxpayer who received the Certificate.
Where can I learn more?
The instructions direct taxpayers to the SHPO website at www.michigan.gov/shpo.