The City and Port of Monroe
welcomes the opportunity to provide your company with information on economic development assistance. New projects undertaken by business and industry will benefit all City of Monroe residents by the creation of new employment opportunities, and the overall improvement to the economic welfare of the City. We pledge our cooperation to work with your company to obtain all financial incentives available locally and state wide. Listed below are descriptions of some of the local and state incentives which may apply to your project.
Industrial Property Tax Abatement (PA 198 of 1974 as amended)
Industrial property tax abatements provide incentives for eligible businesses to make new investment in Michigan. A company which meets the criteria under PA 198 may apply for abatement of property taxes (real and personal) for up to 12 years. Industrial property tax abatements must be approved by the legislative body of the city, township, or village in which the investment will be located and approved at the state level.
Obsolete Property Rehabilitation Act (OPRA) PA 146 of 2000
OPRA provides for a tax incentive to encourage the redevelopment of obsolete buildings. The tax incentive is designed to assist in the redevelopment of older buildings in which a facility is contaminated, blighted, or functionally obsolete. The legislative body in the city essentially freezes taxable value on a designated facility for up to 12 years. By freezing the taxable value, it provides an incentive for the developer to make significant improvements to a building without increasing the property taxes on the building.
MEGA Standard and retention job creation tax credits
The Michigan Economic Growth Authority (MEGA), the state’s response to interstate competition for company expansions and relocations, may provide a refundable tax credit against the Michigan Business Tax to companies expanding or relocating their operations in Michigan. Companies eligible for a MEGA tax credit are those engaged in manufacturing, mining, research and development, wholesale and trade, film and digital media, office operations, or certain tourism projects. In order to qualify companies must create or retain a predetermined number of jobs, meet capital investment and wage requirements, address any competitive disadvantage of expanding or locating a business in Michigan, and other statutory requirements.
Employee training under Michigan’s Economic Development Job Training(EDJT) program
Michigan is an active participant in maintaining and creating a highly trained, skilled, labor force and has a program to deliver job training assistance to employers. The EDJT program seeks to retain and attract business and people to move into the 21st century with a highly skilled workforce.
Michigan’s brownfield redevelopment efforts are considered the premier model for the country. Properties in the not-so-distant past that were considered lost forever are not being actively pursued for revitalization. In Michigan, brownfields are considered lost forever are not being actively pursued for revitalization. In Michigan, brownfields are considered properties that are either contaminated, blighted or functionally obsolete. Revitalization of brownfields is critically important to communities throughout Michigan. “Brownfield” is a term describing the obstacle to property redevelopment caused by the threat of liability from existing contamination. In Michigan, that obstacle has been removed. Buyers and lenders are now reliably protected from existing contamination. In order to promote the redevelopment of brownfield sites the state of Michigan provides brownfield incentives.
Michigan Business Tax (MBT) credits:
Credits are available for up to 12.5% of eligible investments , or up to 20% for certain Urban Development Area Projects as determined by the Michigan Economic Growth Authority (MEGA) board.
Tax Increment Financing:
In addition to MBT credits, contaminated properties defined as “facilities” may be eligible for tax increment financing (TIF) through the Michigan Department of Environmental Quality (MDEQ) for eligible environmental activities. TIF allows projects to capture state and local property taxes (including school taxes) to pay for costs related to brownfield sites. In addition to environmental activities, projects located in a Qualified Local Governmental Unit may also be eligible for TIF to perform non-environmental activities, including demolition, lead and asbestos abatement, infrastructure improvements and site preparation.
Please visit the Michigan Economic Development Corporation’s web site for additional information on incentive programs.