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Tax Abatement

Michigan communities can abate up to 50% of local property taxes for up to 12 years for industrial development projects – including construction or rehabilitation projects, and the purchase of new machinery/equipment. The state can abate up to 12 years depending on the impact on local tax base and job creation. State law also exempts inventory, pollution control equipment and certain tools, dies, jigs and fixtures from local property taxes. The state sales tax is exempted from the purchase of machinery used in manufacturing and energy used in manufacturing.

PA 198 Guidelines
Tax Abatement Application

50% Property Tax Abatements

Historically, office-based companies which focus on technology were not eligible for a 50% property tax abatement to expand or build new facilities. Under new law, non-manufacturing enterprises are now eligible for up to 12 years of abatements on real and personal property.