5803: Historic Preservation Tax Credit for Plans Approved after December 31, 2020 (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 5803 calculates the 2025 Historic Preservation Tax Credit for rehabilitation plans approved after December 31, 2020. It reports qualified rehabilitation expenditures, assigned credits or flow-through shares, and prior-year carryforwards, and determines the credit us
Who files this form
Use 2025 Form 5803 to claim the Michigan Historic Preservation Tax Credit for rehabilitation plans approved after December 31, 2020. Attach it to your Michigan Individual Income Tax Return (MI-1040) or Fiduciary Income Tax Return (MI-1041).
The credit is available to eligible assignees and owners or long-term lessees of qualified historic resources in Michigan whose rehabilitation projects are certified by the State Historic Preservation Office (SHPO).
For a credit from a plan approved before 2012, see Form 3581 instead.
What you'll need
Include Form 5803 with your MI-1040 or MI-1041 and the following supporting documents:
- Certification of historic significance for the resource, Part 1 of the SHPO application.
- Rehabilitation Plan, Part 2 of the SHPO application.
- Certificate of Completed Rehabilitation, Part 3 of the SHPO application.
- If you received an assigned or reassigned credit, the completed assignment or reassignment certificate.
- If you are a flow-through entity member, a copy of the entity’s certificate of completion, plus 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 2024.
How to file
Complete one Form 5803 for each project completed during the tax year. Attach the form and required supporting documents to your 2025 MI-1040 or MI-1041.
- Calculate the basic credit on line 4c using the smaller of 25% of qualified expenditures or the credit reservation from Part 2 of the SHPO application.
- Add the basic credit, assigned credit or flow-through share, and eligible 2024 carryforward on line 7.
- Carry line 7 to MI-1040, line 19a, or MI-1041, line 15a.
- Complete lines 8 through 13 to determine the credit that can offset your current tax liability and any amount available to carry forward.
- Carry line 12 to MI-1040, line 19b, or MI-1041, line 15b. Line 13 shows the amount you may carry forward to 2026.
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.
Common mistakes
- Using the wrong form for an older plan. Form 5803 is limited to plans approved after December 31, 2020. For plans approved before 2012, see Form 3581.
- Entering a Form 3581 carryforward on line 6. The instructions specifically say not to do this.
- Combining completed projects on one Form 5803. Complete a separate form for each project completed during the tax year.
- Waiting too long to claim the credit. The qualified taxpayer must initially claim it within five years after the Certificate of Completed Rehabilitation is issued. Otherwise, the Certificate is no longer valid and the taxpayer is no longer eligible for that rehabilitation plan.
- Overlooking the assignment timing rule. Initial assignments and subsequent reassignments by the first assignees must be made and claimed in the tax year the Certificate is issued.
Questions people ask
How much is the basic credit?
The basic credit is the smaller of 25% of qualified rehabilitation expenditures or the credit reservation from Part 2 of the SHPO application.
Can unused credit be refunded or carried forward?
The credit is nonrefundable. Credit that exceeds your tax liability may be carried forward for up to 10 years or until exhausted. The 2025 form calculates the carryforward to 2026 on line 13.
Can I assign my credit to someone else?
A qualified taxpayer may assign all or part of the credit. An assignment cannot be revoked, but an assignee may reassign all or part of an assigned credit. SHPO provides the form and approves assignments and reassignments. The initial assignment and subsequent reassignment by the first assignee must be made and claimed in the tax year the Certificate is issued.
What happens if the property is sold after the credit is claimed?
If the resource is sold or disposed of, or the Certificate is revoked, less than five years after the Certificate was issued, a percentage of the credit may be subject to recapture. For an assigned credit, recapture is the responsibility of the qualified taxpayer who received the Certificate.