Michigan’s New Brownfield Tax Breaks

Michigan governor Jennifer Granholm signed HB 5471 into law on February 22, 2006. This legislation creates economic opportunity zones in brownfield areas, where tax increment finance mechanisms, single business tax (SBT) credits and property tax abatements may be used to promote investment.

This bill amends the existing Brownfield Redevelopment Financing Act. It targets sites of 40 acres or more that house manufacturing facilities over 500,000 square feet and are located in communities with populations of 30,000 or fewer people.

The Brownfield Act allows qualified local governmental units to establish brownfield redevelopment zones and authorities, which may implement plans for the redevelopment of commercial or industrial property. BFN