| Description: |
b>1. INDUSTRIAL PROPERTY TAX ABATEMENT: Reduction/abatement up to 12 years of both real and personal property taxes to eligible businesses that renovate or expand aging manufacturing plants or build new
plants. Eligible businesses include manufacturing and high tech facilities. Abatement of the State Education property tax must receive separate approval from the MEDC.
2. RENAISSANCE ZONES: Nearly 100% abatement of general property taxes on land and buildings, as well as local personal property taxes and the State Education Tax.
3. TOOL & DIE RECOVERY ZONES: Nearly 100% abatement of general property taxes on land and buildings, as well as local personal property taxes and the State Education Tax.
4. OBSOLETE PROPERTY REHABILITATION ACT: Exemption provided for ad valorem property taxes to commercial property and commercial housing if an obsolete property rehab district has been established.
5. RENEWABLE ENERGY RENAISSANCE ZONES: Renewable Energy Renaissance Zones were created to promote renewable energy businesses. These zones are established by the local community and must contain the renewable energy facility. They may be located anywhere in the state. The company will not pay the MBT, state education tax, personal and real property and local income tax.
6. COMMERCIAL REHABILITATION ACT: Commercial property is defined as a qualified facility which is primarily used in the operation of a commercial business. Rather than paying property tax, the property owner pays a Commercial Rehabilitation Tax. The value of the building and exempts the new investment from local taxes. The abatement may last for ten years.
|
| Eligibility Requirements: |
1. Local communities must approve the establishment of an Industrial Development District or a Plant Rehabilitation District. Once approved, the company pays an Industrial Facilities Tax(IFT) that reflects the savings.
2. Must be located in a designated Renaissance Zone, must be current with all tax filings and taxes due, file an annual MBT form and meet all filing requirements with the local community.
3. Property must be used primarily for tool and die business operations, have less than 75 full time employees and be located in a Tool and Die Recovery Zone.
4. Property must be commercial property or commercial housing property that is a "facility" (contaminated), blighted or functionally obsolete.
5. A Renewable Energy Facility means a faclity that creates energy from from the wind, sun, trees, grasses, biosolids, algae, agricultural commodities or residues from agricultural processes, wood or forest processes, food production or processing or paper products. The facility may also focus on R&D or the manufacturing of sytems used in creating renewable energy.
An application is submitted to the local community and the company needs to meet with the MEDC. The local community must pass a resolution approving the tax abatement. The company must demonstrate the positive impact the project will have on the State of Michigan.
6. The local community etablishes the district to be created. Land and personal property are not included in the abatement.
|
