Historic Preservation

What is Historic Preservation?

Article provided by Downtown Marquette

The MDA values historic preservation on the basis that history serves as a link to the community’s past.  Preservation enhances the quality of life in Michigan downtowns by protecting the historic core.  It ensures proper reuse of existing buildings, provides economic stimulus, enhances property values, and educates the public of the past and future successes of preserving places of significance to our history.

The National Historic Preservation Act of 1976

Set forth by the Federal government in partnership with states, local governments, and tribes, this policy promotes historic preservation by providing leadership and legislation towards preserving the nation’s historic resources.   The National Historic Preservation Tax Incentives Program, jointly administered by the National Park Service and the State Historic Preservation Office, is the nation’s most effective federal program to promote urban revitalization and encourage private investment in rehabilitating historic buildings. 

Americans for Disabilities Act of 1990 Access Tax Credits

A 50% Federal disabled access credit helps small business owners cover eligible costs incurred to comply with applicable requirements under the ADA Act of 1990.  The credits are only applicable to construction costs in relation to making the building ADA compliant.  Use IRS Form 8826.

Federal Historic Preservation Tax Credits

A 20% Federal Rehabilitation Tax Credit may be available for qualified rehabilitations of income producing certified historic buildings.   A certified historic structure is a building listed individually on the National Register of Historic Places, or one which contributes to the character of registered historic district

The tax credit applies to specifically preserving income-producing historic properties, which are properties used in a trade or business or held for the production of income.  It may be utilized for offices, retail, industrial or agricultural enterprises or for rental housing.  It may not serve exclusively as the owner’s private residence. 

A certified rehabilitation is one which follows the guidelines set forth in the U.S. Secretary of the Interior’s Standards for Rehabilitation and is approved by the National Park Service as being consistent with the historic character of the property.  It is assumed that some alteration of the historic building will occur to provide for efficient use.  However, the project must not damage, destroy, or cover materials or features that help define the buildings historic character.

To qualify for the tax credits, applicants must complete the Historic Preservation Certification Application prior to starting work.   Applications should be made through the State Historic Preservation Office.  For more information, contact Robert McKay at (517) 335-2727, or via e-mail at McKayR@michigan.gov

Federal Rehabilitation Tax Credits

A Federal Tax Credit available for rehabilitations to non-historic, non-residential, income producing buildings originally constructed before 1936.
The rehabilitation credit applies to costs for renovation, restoration, and reconstruction. It does not include enlargement or new construction. 

The percentage of qualified rehabilitation costs is 10%.  In order to qualify the building cannot be listed on the National Register of Historic Places or be located within a certified historic district.

Rehabilitation must meet the following internal and external wall retention regulations:

·         at least 50% of building walls in place at the beginning of construction must remain as external walls upon completion

·         at least 75% of existing external walls must remain in place as either external or internal walls

·         at least 75% of the internal structural framework of the building must remain in place