FOR BUILDING REHABILITATION & NEW CONSTRUCTION

Tax Incentives

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 The National Register of Historic Places individually, or a building that is located within a designation 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, Preservation Tax Incentives, Technical preservation Services, Heritage Preservation Services – 2255, P.O. Box 37125 Washington, D.C. 20013 or the State Historic Preservation Office, Michigan historic Center, 717 W. Allegan, Lansing, MI 48918 at 517-373-0511

 State Historic Preservation Tax Credits

To encourage the preservation and rehabilitation of Michigan’s historic resources, the Michigan Department of the 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 historic resource who undertake a certified rehabilitation project.  This applies to home owners, commercial property owners and business owners.  Certified Historic Resources, in this case, include historic resources that are 1) located in a community with a population of 5,000 people or more and is a contributing resource in a local historic district established under Michigan’s local Historic Districts Act, or 2) located in a community with a population under 5,000 people and is a contributing resource in Historic Sites or the national Register of Historic Places

For more information on the Michigan Historic Preservation State Tax Incentive visit www.sos.state.mi.us/history/preserve/preserve.html or contact the State Historic Preservation Office, 717 W. Allegan, Landing, MI 48918 at 517-373-7630.

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 sigle 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 who 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 48913 (517) 335-7258. 

Other Incentives

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., N.W., Washington, DC 20036 (202)588-6219. 

Preservation Easements

A preservation easement is an agreement between a property owner and a local agency or organization, the purpose of the agreement is to maintain the defined historic physical character of the property, including the right to review, approve or deny any alterations.  The easement may qualify for tax advantages including a Federal Income Tax deduction and/or reduced local property tax.

For more information contact www.nthp.org 

Americans for Disabilities Act (ADA) of 1990 Access Tax Credits

This 50% tax credit ($259 deductable and not in excess of $10,250) is available to small business owners for “eligible access expenditures” that meet ADA Guidelines when rehabilitating an existing building.  The credits apply to only construction costs directly associated with making the building ADA compliant.

For additional information and forms visit www.irs.gov or www.mdcd.org. 

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 the City of Scottville at 231-757-4729

Local Rehab Programs 

Michigan Main Street Design Services

Training and consultation services are provided by the State Historic Preservation Office to selected Main Street communities in order to help maintain and enhance a property’s historic integrity.  Selected applicants will receive a Site Visit and Design Package including schematic façade drawing, specifications, cost estimate and follow up.

For more information contact the Scottville Main Street Manager at 231-757-9674 or at mainstreet@cityofscottville.org.

Low Interest Loan Program

The Low Interest Loan Program, funded by a coop of local banks, was established to provide financial assistance for persons within the designated Main Street Area making improvements or repairs in order to repair exterior facades.  For the purpose of this program, the term façade includes upper stories and rear facades including roofs.  Loans are available for up to $15,000 and a minimum of $2,000, upon approval by the Loan sub-committee of Main Street.  Persons seeking a loan must complete an application form after a consultation with the Main Street Manager for Scottville Main Street.

For more information or application materials contact the Scottville Main Street Manager at 231-757-9674 or at mainstreet@cityofscottville.org. 

Signature Building Program

This program is designed to assist a community by providing 75% of the funds necessary to acquire a vacant or underused traditional downtown signature building for rehabilitation purposes that must result in job creation and 51% of the jobs must be held by low/moderate income persons.  The project should be located within a traditional downtown and the community will need to demonstrate that they can acquire the property, rehabilitate the building and create the jobs as soon as possible.

For more information on this program please contact the Community Assistance Team at Michigan State Housing Development Authority at 517-373-8370. 

Façade Grant Program

This program is designed to assist a community in making physical improvements to an entire traditional downtown area, block, or portion of a block that contains buildings, properties and businesses in need of exterior façade improvements within a traditional downtown.  A committed local match of 50% of the total project cost is required.

For more information on this program please contact the Community Assistance Team at Michigan State Housing Development Authority at 517-373-8370. 

Rental Rehabilitation Program

The Downtown Rental Rehab Program (DRRP) provides forgivable loans to downtown property owners to rehabilitate second story residential space.  Units must be made available to persons that meet current income guidelines (80% of area median income) and rents must be kept at fair market levels as defined by the Michigan State Housing Development Authority.

Business Programs and Incentives

Quarterly Business Training

Quarterly Business Trainings have been organized throughout the year by the Scottville Main Street Program for downtown businesses interested in growing their business.  Topics are independent business specific and chosen with Scottville’s needs in mind.

For a full schedule of upcoming Business Trainings, contact the Scottville Main Street Manager at 231-757-9674 or at mainstreet@cityofscottville.org.

Northern Initiatives Program

Provides access to capital and information for rural Michigan businesses including; business coaching, accounting, market research and tips, website development and networking.

For more information contact the Northern and Central Lower Michigan representative, Peter Cambier at 231-743-9599 or at www.nliupnorth.org.

SCORE Program

This program provides access to thousands of business experts that can give real world advice in every business area.  You can take advantage of face to face consultation with business professionals, on site evaluation of your business and a team of SCORE counselors to provide you with specialized assistance. 

For more information call the Ludington & Scottville Chamber of Commerce at 231-845-0324 or visit www.score.org.

Wake Up Scottville! Business Networking

Downtown businesses are invited to join us in an informal networking event at rotating locations throughout downtown Scottville.  Breakfast and conversation is provided by a sponsoring business.  Updates are also given by local and state agencies, including a Business Spotlight, aimed at educating business owners on what is available in neighboring businesses.

For more information on the next Wake Up Scottville! please contact the Scottville Main Street Manager at 231-757-9674 or at mainstreet@cityofscottville.org. 

Small Business Technology Development Center

This organization in cooperation with the SCORE Program provides services to small businesses at no cost.  Assistance includes; business basics, demographic information, industry/trade information, licensing information, business plan development, financing, and product development.

Contact the Scottville Main Street manager, at 231-757-9674for more information on any of the grants and assistance programs listed.