There are a number of special incentives that may be available to your company, depending upon the nature of your investment and development plans and whether your business qualifies to receive tax exemptions, credits, grants, or other benefits.
The staff here at Schoolcraft Tourism & Commerce will assess your business needs and match them with the appropriate state and local programs and will assist you in coordinating each step of the tax exemption and incentive program process.
Below are a few of the exemptions available to your business. Please contact our staff at (906) 286-1922 for further assistance.
The staff here at Schoolcraft Tourism & Commerce will assess your business needs and match them with the appropriate state and local programs and will assist you in coordinating each step of the tax exemption and incentive program process.
Below are a few of the exemptions available to your business. Please contact our staff at (906) 286-1922 for further assistance.
Michigan replaced the Michigan Business Tax (MBT) in 2012 with a new, simpler and more competitive corporate income tax.
- Low tax rates have been established in Michigan. The new structure taxes C-Corporations at 6% on federal taxable income apportioned to Michigan. Other entities – individuals, partnerships, LLC’s, etc. – would have income flow to their personal income tax. The personal income tax rate has dropped to 4.25% from a previous 4.35%.
- The change has reduced business taxes by an estimated 86%. All industries are in line for significant tax cuts, thus reducing operational costs and encouraging new investment in the State.
- Michigan’s overall business tax climate ranking according to the Tax Foundation's 2016 State Business Tax Climate Index is now 13th in the U.S.
P.A. 198 of 1974, as amended
The Plant Rehabilitation and Industrial Development Districts Act, (known as the Industrial Facilities Exemption) PA 198 of 1974, as amended, provides a tax incentive to manufacturers to enable renovation and expansion of aging facilities, assist in the building of new facilities, and to promote the establishment of high tech facilities. An Industrial Development District (IDD) or a Plant Rehabilitation District (PRD) must be created prior to initiating a project so it is essential that you consult your local assessor before commencing a project. An Industrial Facilities Exemption (IFE) certificate entitles the facility to exemption from ad valorem real and/or personal property taxes for a term of 1-12 years as determined by the local unit of government. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division and the Michigan Economic Development Corporation. The State Tax Commission (STC) is ultimately responsible for final approval and issuance of certificates. Exemptions are not effective until approved by the STC.
The Plant Rehabilitation and Industrial Development Districts Act, (known as the Industrial Facilities Exemption) PA 198 of 1974, as amended, provides a tax incentive to manufacturers to enable renovation and expansion of aging facilities, assist in the building of new facilities, and to promote the establishment of high tech facilities. An Industrial Development District (IDD) or a Plant Rehabilitation District (PRD) must be created prior to initiating a project so it is essential that you consult your local assessor before commencing a project. An Industrial Facilities Exemption (IFE) certificate entitles the facility to exemption from ad valorem real and/or personal property taxes for a term of 1-12 years as determined by the local unit of government. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division and the Michigan Economic Development Corporation. The State Tax Commission (STC) is ultimately responsible for final approval and issuance of certificates. Exemptions are not effective until approved by the STC.
P.A. 328 of 1998, as amended
The New Personal Property Exemption, PA 328 of 1998, (MCL 211.9 f) as amended, affords a 100% property tax exemption for specific businesses located within eligible distressed communities. This exemption is for all new personal property placed in a district that has been established by the local unit of government. The local unit of government determines the number of years granted and may grant any number of years for the exemption. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division and the State Tax Commission. The State Treasurer, with the written concurrence of the President of the Michigan Strategic Fund, is responsible for final approval. Exemptions are not effective until approved by the State Treasurer.
The New Personal Property Exemption, PA 328 of 1998, (MCL 211.9 f) as amended, affords a 100% property tax exemption for specific businesses located within eligible distressed communities. This exemption is for all new personal property placed in a district that has been established by the local unit of government. The local unit of government determines the number of years granted and may grant any number of years for the exemption. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division and the State Tax Commission. The State Treasurer, with the written concurrence of the President of the Michigan Strategic Fund, is responsible for final approval. Exemptions are not effective until approved by the State Treasurer.
P.A. 146 of 2000, as amended
The Obsolete Property Rehabilitation Act (OPRA), PA 146 of 2000, as amended, provides property tax exemptions for commercial and commercial housing properties that are rehabilitated and meet the requirements of the Act. Properties must meet eligibility requirements including a statement of obsolescence by the local assessor. The property must be located in an established Obsolete Property Rehabilitation District. Exemptions are approved for a term of 1-12 years as determined by the local unit of government. The property taxes for the rehabilitated property are based on the previous year's (prior to rehabilitation) taxable value. The taxable value is frozen for the duration of the exemption. Additionally, the State Treasurer may approve reductions of half of the school operating and state education taxes for a period not to exceed 6 years for 25 applications annually. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division. The State Tax Commission (STC) is responsible for final approval and issuance of OPRA certificates. Exemptions are not effective until approved by the STC.
The Obsolete Property Rehabilitation Act (OPRA), PA 146 of 2000, as amended, provides property tax exemptions for commercial and commercial housing properties that are rehabilitated and meet the requirements of the Act. Properties must meet eligibility requirements including a statement of obsolescence by the local assessor. The property must be located in an established Obsolete Property Rehabilitation District. Exemptions are approved for a term of 1-12 years as determined by the local unit of government. The property taxes for the rehabilitated property are based on the previous year's (prior to rehabilitation) taxable value. The taxable value is frozen for the duration of the exemption. Additionally, the State Treasurer may approve reductions of half of the school operating and state education taxes for a period not to exceed 6 years for 25 applications annually. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division. The State Tax Commission (STC) is responsible for final approval and issuance of OPRA certificates. Exemptions are not effective until approved by the STC.
P.A. 210 of 2005, as amended
The Commercial Rehabilitation Act, PA 210 of 2005, as amended, affords a tax incentive for the rehabilitation of commercial property for the primary purpose and use of a commercial business or multi-family residential facility. The property must be located within an established Commercial Rehabilitation District. Exemptions are approved for a term of 1-10 years, as determined by the local unit of government. The property taxes are based upon the previous year's (prior to rehabilitation) taxable value. The taxable value is frozen for the duration of the certificate. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division. The State Tax Commission (STC) is responsible for final approval and issuance of certificates. Exemptions are not effective until approved by the STC
The Commercial Rehabilitation Act, PA 210 of 2005, as amended, affords a tax incentive for the rehabilitation of commercial property for the primary purpose and use of a commercial business or multi-family residential facility. The property must be located within an established Commercial Rehabilitation District. Exemptions are approved for a term of 1-10 years, as determined by the local unit of government. The property taxes are based upon the previous year's (prior to rehabilitation) taxable value. The taxable value is frozen for the duration of the certificate. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division. The State Tax Commission (STC) is responsible for final approval and issuance of certificates. Exemptions are not effective until approved by the STC
P.A. 451 of 1994, as amended
Public Act 451 (of 1994) established by Air Pollution Control and Water Pollution Control Tax Exemptions. Under this act, a manufacturer may receive a tax exemption of 100% of the taxes on new air or water pollution control devices or systems that they purchase and install.
The exemption is available to the manufacturer for the life of the devises or systems. There is no local government approval necessary for this exemption. Applications are made to the Michigan Department of Treasury, but are reviewed by the Michigan Department of Environmental Quality. Exemption Certificates are granted only upon the MEDQ’s approval.
Public Act 451 (of 1994) established by Air Pollution Control and Water Pollution Control Tax Exemptions. Under this act, a manufacturer may receive a tax exemption of 100% of the taxes on new air or water pollution control devices or systems that they purchase and install.
The exemption is available to the manufacturer for the life of the devises or systems. There is no local government approval necessary for this exemption. Applications are made to the Michigan Department of Treasury, but are reviewed by the Michigan Department of Environmental Quality. Exemption Certificates are granted only upon the MEDQ’s approval.