A
Summary of Financial Incentives For Building Rehabilitation
& New Construction
Façade Improvement Program
Annual program funded by the Downtown Development Authority for front, rear and side façade improvements including painting, cleaning, window/door replacement, masonry repair, awning repair/replacement, slip cover removal, etcetera. Applications are distributed at the beginning of each calendar year and awards are based on program budget, scope of improvement, etcetera.
Contact Main Street Monroe office at (734) 240-2458 for more information.
Federal
Historic Preservation Tax Credits
The Federal Tax Credit is a 20% income tax credit
(20% of the amount spent for rehabilitation) for the
certified rehabilitation * of income-producing certified
historic structures. A certified historic structure
is a building listed in the National Register of Historic
Places individually, or a building that is located
within a designated national or local historic district
and is determined by the National Park Service to
be contributing to that historic district.
For
more information visit www.cr.nps.gov
or contact the National Park Service, or the State
Historic Preservation Office, Michigan Historic Center,
Lansing MI (517) 373-0511.
State
Historic Preservation Tax Credits
To encourage the preservation and rehabilitation of
Michigan’s historic resources, the Michigan
Department of Treasury along with the Michigan Department
of State offer up to a 25% state income tax credit**
(25% of the amount spent for rehabilitation). The
State Tax Credit is available to building owners/
lessees of a certified rehabilitation project. This
applies to homeowners, commercial property owners
and business owners. Certified Historic Resources,
in this case, includes ones that are located in a
community with a population of 5,000 people or more
and is a contributing resource in a local historic
district under Michigan’s local Historic Districts
Act, or located in a community with a population under
5,000 people and is a contributing resource in a local
historic district, or the National Register of Historic
Places.
For
more information on the Michigan Historic Preservation
State Tax Incentive visit http://www.michigan.gov
State Historic Preservation Office or contact
the State Office at (517) 373-1630.
New
Construction Downtown Development Authority
The DDA tax increment that is capture can be used
to finance public infrastructure improvements associated
with a new downtown construction project.
For
more information contact the Main Street Office at
(734) 240-2458.
Preservation
Easement
An agreement between a property owner and a local
agency or organization which then maintains the defined
historic physical character of the property, including
the right to review, approve, or deny any alterations.
Easements may be available for tax advantages including
a Federal Income Tax deduction and/ or reduced local
property tax.
For
more information contact www.nthp.org
National
Trust Loan Funds
Administered
by the Community Partners Program of the National
Trust for Historic Preservation, the following loans
and lines of credit funds support preservation projects
to stimulate investment in older residential neighborhoods
and downtown commercial districts:
1) Inner-City Ventures Fund (for building rehabilitation
in low/moderate and mixed income areas) and
2) National Preservation Loan Fund (for non-profit
& public agencies).
For
more information visit www.nthp.org
or contact the Community Partners Program of the National
Trust for Historic Preservation, 1785 Massachusetts
Ave. (202) 588-6219.
State
Brownfield Redevelopment Grants and Loans
Eligible properties are sites or facilities with known
contamination, properties with redevelopment potential
and suspected contaminated, or waterfront properties
with significant redevelopment proposals. One application
is used for all grants and loans for brownfield redevelopment.
For
more information visit contact the Michigan Economic
Development Corporation, Community Assistance Team,
300 N. Washington Square, Lansing MI 48193 (517) 335-7258
or www.michigan.org
Brownfield
Redevelopment Finance Authority Single Business Tax
(SBT) Credits
Michigan Public Act 143 of 2003, provides an incentive
in the form of a tax credit for eligible redevelopment
investments on “Brownfield” property.
The SBT credit is against the single business tax
the business pays. If the total of all eligible investments
for the project is $10 million or less, the credit
is 10% of the eligible investment. A project must
be included in a Brownfield Plan (local or county)
and approved by the local governing body. The credit
can be passed from qualified taxpayers to partners
of the project also would be compensated for their
investments
For
more information visit www.michigan.org
or contact the Michigan Economic Development Corporation,
Community Assistance Team, 300 N. Washington Square,
Lansing MI 48193 (517) 335-7258.
Obsolete
Property Rehabilitation Act (OPRA)
Michigan Public Act 146 of 2000 provides for a tax
incentive to encourage the redevelopment of obsolete
buildings, many of which are found in historic, traditional
downtown areas within qualified “core communities.”
The tax incentive is designed to assist in redevelopment
of older buildings, in which a facility is contaminated,
blighted or functionally obsolete The goal is to rehabilitate
older buildings into vibrant commercial and commercial/housing
projects.
For
more information visit www.michigan.org
or contact the Michigan Economic Development Corporation,
Community Assistance Team at (517) 335-7258.
Heritage
Loan Fund
This program is a collaborative effort between the
City of Monroe and local lending institutions geared
toward stimulating reinvestment in Downtown Monroe,
as well as encouraging the rehabilitation and improvement
of our local historic resources.
Contact
City of Monroe (734) 743-0700 or contact the Main
Street Monroe office at (734) 240-2458.
Michigan
Rehabilitation Code for Existing Buildings
Use of this simplified, innovative and flexible new
building code can effectively reduce overall costs
for historic building rehabilitation projects. The
new code is incorporated in the 2003 International
Building Code and based upon health, safety and welfare
concerns, yet allows for retaining a historic building’s
original architectural integrity.
For
additional information on the 2003 International Building
Code, contact Monroe’s Development Services,
building department.
