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A. Explain how the rules have been coordinated, to the extent practicable, with other federal, state, and local laws
applicable to the same activity or subject matter. This section should include a discussion of the efforts undertaken
by the agency to avoid or minimize duplication.
No coordination or action is required to avoid or minimize duplication.
4. If MCL 24.232(8) applies and the proposed rules are more stringent than the applicable federally mandated
standard, provide a statement of specific facts that establish the clear and convincing need to adopt the more
stringent rules.
MCL 24.232(8) does not apply to the proposed rules because there is no applicable federally mandated standard.
5. If MCL 24.232(9) applies and the proposed rules are more stringent than the applicable federal standard,
provide either the Michigan statute that specifically authorizes the more stringent rules OR a statement of the
specific facts that establish the clear and convincing need to adopt the more stringent rules.
There is no federal standard applicable here and as such MCL 24.232(9) does not apply to the proposed rules because
there is no applicable federally mandated standard.
Purpose and Objectives of the Rule(s)
6. Identify the behavior and frequency of behavior that the proposed rules are designed to alter.
The proposed rules are designed to mandate compliance with the act.
A. Estimate the change in the frequency of the targeted behavior expected from the proposed rules.
There is no expected change in frequency of the targeted behavior except that the Michigan Historic Tax Credit (the
“tax credit”) will be available to owners of historic properties.
B. Describe the difference between current behavior/practice and desired behavior/practice.
The proposed rules allow for the collection of application materials, establish a review fee structure, define the
priority numbering system to be used, create an appeals process, and establish a property transfer protocol to support
the operation of the new state historic tax credit program. Currently there is no state level historic tax credit program.
The difference between the prior behavior and the current behavior is that the tax credit will now be available to
owners of historic properties.
C. What is the desired outcome?
The desired outcome of promulgating the proposed rules is to administer, regulate, and provide for the enforcement of
the tax credit. Additionally, the agency’s goal is for the proposed rules to create a program framework which
encourages private investment in the rehabilitation of Michigan’s recognized historic resources.
7. Identify the harm resulting from the behavior that the proposed rules are designed to alter and the likelihood
that the harm will occur in the absence of the rule.
Without the promulgation of the proposed rules, the public will not be able to make use of the tax credit.
A. What is the rationale for changing the rules instead of leaving them as currently written?
As the tax credit program is new to Michigan, there are currently no rules.
8. Describe how the proposed rules protect the health, safety, and welfare of Michigan citizens while promoting a
regulatory environment in Michigan that is the least burdensome alternative for those required to comply.
These rules do not address a public health, safety, or welfare issue and are intended to accommodate the operation of
the tax credit program.
9. Describe any rules in the affected rule set that are obsolete or unnecessary and can be rescinded.
As the tax credit program is new to Michigan, there are currently no rules.
Fiscal Impact on the Agency
Fiscal impact is an increase or decrease in expenditures from the current level of expenditures, i.e. hiring additional staff,
higher contract costs, programming costs, changes in reimbursements rates, etc. over and above what is currently
expended for that function. It does not include more intangible costs for benefits, such as opportunity costs, the value of
time saved or lost, etc., unless those issues result in a measurable impact on expenditures.
10. Please provide the fiscal impact on the agency (an estimate of the cost of rule imposition or potential savings
for the agency promulgating the rule).
MCL 24.245(3)