Business incentives are available to new, expanding and relocating companies in a wide variety of categories. The LEAP team has an experience and knowledge of business benefits and savings at every level, and will connect you with the incentive programs that are right for you.
Redevelopment Ready Communities
Learn more about incentives offered by the State of Michigan and about becoming a Redevelopment Ready Community from the MEDC website.
Opportunity Zones are intended to spur private investment, economic growth, and job creation in distressed areas, through tax incentives tied to the longevity of the investments. Nine communities within Clinton, Eaton, and Ingham counties have opportunity zone designations :
- Ingham County: Delhi Charter Township, City of East Lansing, City of Lansing,Meridian Charter Township
- Clinton County: Bingham Township, City of St. Johns
- Eaton County: Carmel Township, City of Charlotte, Eaton Township
Contact us to learn more about Opportunity Zones or visit the MSHDA website for more information.
Commercial Rehab Rebate Program
The DDA also has the resources to help you update existing structures. The Commercial Rehabilitation Rebate Program (CRRP) offers grants to businesses within its district for renovations and exterior improvements. We believe this kind of support makes Delhi Township a smart location for your business. We're a community, not just a township. By making eligible improvements in commercial building exteriors, facades and landscaping within the Central Business District, business people, whether property owners or tenants, will enjoy many long-term financial and esthetic benefits.
The Commercial Rehabilitation Rebate Program offers liberal rebates for those who participate. For example, architectural and landscape design fees can be reimbursed by the DDA to a maximum of $1,000 each. Eligible improvements up to $100,000 of owner-paid costs can be reimbursed to a maximum of 50% or $50,000 for each commercial building.
Grease Interceptor Loan
The Delhi Township Downtown Development Authority provides a 0% interest loan program designed to assist those Delhi Township businesses concerned with the price of installing grease interceptors. The DDA will loan eligible businesses up to $20,000 for the design, purchase and installation of a grease interceptor at 0% interest with repayment to occur over a period of up to five years. Eligible businesses must complete a brief application form prior to commencing installation of the interceptor and must agree to repay the loan as a part of their monthly sewer bill.
City of Lansing
Corridor Facade Program
A matching grant program for façade projects on commercial, mixed-use, and office spaces along commercial corridors outside of the downtown area.
To start the application process, interested businesses and property owners can fill out a brief pre-application form . FY 2018/2019 Corridor Façade Program applications will be accepted on a first-come first-served basis July 1, 2018 through February 15, 2019.
Corridor Improvement Authority Act – PA 280 of 2005
What - The Corridor Improvement Authority is a Mayoral Appointed board of volunteers who set improvement priorities for public property within a Corridor Improvement District. The district is typically along a commercial corridor and can use Tax Increment Financing, Special Assessments, Bonds, and Donations to fund specific public infrastructure improvements like: beautification, sidewalks, bike racks, street "furniture," parking improvements, bike lanes, and façade grants.
Who - The Corridor Improvement Authority is overseen by a joint board made up by adjoining municipalities and business owners in the district. For instance, the Michigan Ave. CIA board is made up of representatives from the Cities of Lansing and East Lansing and the Charter Township of Lansing, as well as members of the business community along Michigan Ave.
Why - The Authority's goal is to carry out the vision of the affected municipalities and business community. The CIAs in Lansing were created to better unify the look and function of the corridor for visitors, residents, and businesses alike. The end result will create the finest commercial corridors in Michigan, connecting the State Capitol, Michigan State University, and all adjoining municipalities.
Lansing Tax Increment Finance Authority (Lansing TIFA)
What- The Lansing TIFA is incorporated under Michigan Public Act 450 of 1980 as amended. The TIFA was created to prevent urban deterioration and encourage economic development, neighborhood revitalization and historic preservation. PA 450 allows the TIFA to create and implement finance and development plans and to provide for the creation of a board to govern the TIFA. It also allows the TIFA to issue bonds and to use tax increment financing to fund public infrastructure and facilities in the plans.
Who - The Lansing TIFA Development and Financing Plans were approved by the Lansing City Council in 1982. The plan contained public projects that supported and facilitated economic development in the Lansing TIFA District. The District was designated as the core downtown area of Lansing. The Plans have since been amended several times as projects were completed or added. The Plans have also been amended to respond to changes in the economy and financing markets. The Plans utilize the authority of the TIFA to issue public bonds to finance public projects. With tax increment financing, the taxable value of the properties within the District the year the Authority was established becomes the base year taxable value. Growth in the taxable value of the district is then "captured" and the revenue from that captured taxable value is available to the Authority to be used to pay for the projects as defined in the TIFA Plans or to make bond payments on the bonds issued to finance projects.
Why- The Lansing TIFA provides a useful financing tool for the City to fund public infrastructure and facility projects that promote economic development. Examples of projects financed by the TIFA include the Lansing Center, the joint County/City Court Building, Public Parking Facilities and improvements to Washington Square. All of these valuable public assets help promote economic activity and job creation in Lansing.
Obsolete Property Rehabilitation Act (OPRA) - PA 146 of 2000
What - Obsolete Property Rehabilitation Act (OPRA) is a real property incentive, which "freezes" the taxable value on the structural portion of a "functionally obsolete" or contaminated property for a period up to 12 years. The incentive involves a two part process: 1) the creation of an OPRA District, 2) the approval of an OPRA Certificate.
This incentive only abates taxable value on new improvements to the structural portion of a property. The land portion of the property continues to be taxed at the new improved rate. Essentially, an owner will pay real estate taxes as if the newly rehabbed building is still in disrepair.
Who - The OPRA incentive is available for use on properties slated for redevelopment that have been deemed "functionally obsolete" by a level 3 or 4 Assessor or are environmental contaminated. The property must be located in a State of Michigan designated Core Community like Lansing.
Why - The OPRA incentive is utilized to induce the redevelopment of properties which have generally experienced extreme neglect. These properties often have major structural deficiencies, inadequate utility systems, and other costly prohibitives to redevelopment. Qualified properties have generally been a drag on the value of surrounding properties, and are therefore in the best interest of the municipality to redevelop,
Obsolete Property Taxable Value = $200,000
Redevelopment Costs = $100,000
New Taxable Value Added = $50,000 (assumes 50% of true cash value of improvements)
Est. Tax Savings over 12 Years = $38,000
Redevelopment Sites and Brownfield Redevelopment
There are many sites in Michigan that are qualified Brownfields—contaminated, functionally obsolete, or blighted properties—which can be great redevelopment sites with the right financing. Under any of the Brownfield redevelopment sites incentives, sites that are remediated in Midwest areas may qualify for business tax credits. For example, a Brownfield redevelopment project that has $100,000 in eligible costs in demolition, contamination clean up, and site preparation will also raise the taxes paid by $10,000 per year once completed. After getting local government approval, the developer would then make all the improvements including the Brownfield eligible expenses. Each year after the developer pays their taxes the municipality will reimburse the new portion of taxes back to them until those eligible costs are reimbursed. If you are looking for sites in the Midwest for your project, the Brownfield redevelopment sites in Lansing, Michigan, these incentives as well as our other economic incentives, Michigan economic development grants and corporate relocations assistance show that Lansing is exactly where you want to be.
Neighborhood Enterprise Zone Act - PA 147 of 1992 - Neighborhood Enterprise Zone Program
What - The Neighborhood Enterprise Zone (NEZ) is a program that provides a reduction in real property taxes for the rehabilitation of existing residential housing or for new construction of residential housing.
Who - The NEZ is available to eligible property owners who make taxable improvements to existing residential housing or for a newly constructed residential housing that is located in an NEZ District. The City of Lansing currently has designated over 20 NEZ District areas. The NEZ Program lowers real property taxes.
Why - The purpose of establishing NEZs in Lansing is to promote home ownership and investment in areas where the greatest impact would occur and where such improvements will encourage additional investment in adjacent neighborhoods.
After the Lansing City Council has approved a NEZ District, the eligible property owner must make application through the Lansing EDC Office before pulling a building permit.
Example: For newly constructed properties, homeowners would pay one-half (1/2) of the State of Michigan's average millage rate with the exception of land. A newly constructed property valued at $100,000 would pay an estimated $2,333 in annual real property taxes without the NEZ tax and would pay an estimated $1,077 in annual real property taxes with the NEZ tax. The NEZ is typically approved for a period of 12 years by City Council.
Example: The amount of the NEZ tax on a rehabilitated residential structure is frozen at the pre-rehabilitated taxable value with the exception of land. If a home has a current taxable value of $20,000 and the property owner makes improvements that would increase the taxable value by $15,000, the taxable value would remain at $20,000 rather than $35,000. The NEZ is typically approved for a period of 12 years by City Council.
Lansing Regional SmartZone
What - The Lansing Regional SmartZone (LRSZ) is a cooperative effort with the Michigan Economic Development Corporation (MEDC) to stimulate the growth of technology-based businesses in the Lansing Region. This is a partnership between the City of East Lansing, the City of Lansing, Ingham County,
Lansing Regional Chamber of Commerce, MBI International, Michigan State University, the Michigan State University Foundation and the University Corporate Research Park. We provide the support services needed to build high tech companies. We empower entrepreneurs to build successful technology businesses. The SmartZone is a dynamic organization of leaders from all backgrounds and business sectors. Together, these visionaries are combining their talents and energy to transform the Lansing Region into a high-technology powerhouse. The LRSZ has locations in MSU University Corporate Research Par, Downtown East Lansing and Downtown Lansing.
Who - The LRSZ focuses on attracting, creating and expanding businesses in the fields of life sciences, advanced manufacturing and information technology. Special attention is given to helping firms capitalize on research and technical resources at Michigan State University and (MBI).
Why - The Lansing Regional SmartZone offers:
- Incubation, office, dry and wet lab space
- Network of business, professional and technical services
- Access to university resources, including technical research equipment and laboratories
- Linkages to sources of knowledge and expertise via the university and private industry resources
- Business development services and resources that are technical, managerial, financial, legal or intellectual in nature, specific to the emerging businesses' needs
- Commercialization assistance
- Coaching and mentoring
Preparation for access and presentations to investors
Tax Free Renaissance Zones
What -Renaissance Zones are parts of Lansing which are virtually free of all state and local taxes for businesses located within their boundaries for up to 15 years. These zones are established to promote economic development throughout the state. There are over 150 geographic areas in Michigan that are designated as Renaissance Zones. The City of Lansing currently has one active Renaissance Zone and is one of a select few cities in Michigan with ability to designate additional zones. Typically new zones are reserved for major investment and job creation development projects.
Who- Any business operating, or resident living within a Renaissance Zone enjoys the tax benefits from the Zone. To stay eligible for these benefits, both businesses and residents must remain current on any taxes that are not exempted by the Renaissance Zone.
Why - Most state and local taxes are abated in the Renaissance Zones for 15 years. The tax benefits are phased out at 25% increments during the Zone's final three years of existence. Property owners are still responsible for property taxes levied to pay for local bonded indebtedness, school sinking funds, and special assessments. Property owners not residing in the zone must also pay personal income taxes. The following state and local taxes are abated for businesses and residents located in a Renaissance Zone:
- Local Real Property Taxes - General property taxes on land and buildings are nearly 100% abated
- Local Personal Property Taxes - These general property taxes are nearly 100% abated for the business' personal property that is located in the Renaissance Zone.
- School Property Taxes Abated - Personal and real property taxes for schools are 100% eliminated in the zone.
- Michigan Business Tax (businesses only) - A tax credit is allowed against the Michigan Business Tax (MBT) for business activity attributable to the Renaissance Zone.
- Local Corporate Income Tax (businesses only) - City corporate income taxes, if applicable in the zone, are 100% abated.
- State Personal Income Tax - Individuals living in a Renaissance Zone are exempt from paying the state personal income tax.
- Local Income Tax - Individuals living in a Renaissance Zone are exempt from paying the local personal income tax.
Industrial Development Districts & Plant Rehabilitation - PA 198 of 1974 - Property Tax Abatement
What - PA 198 allows for the abatement of taxes on manufacturing and high-technology related investment in the city. The incentive is available for improvements to buildings and structures (real property), as well as the purchase of machinery and equipment (personal property). The abatement is for a period up to 12 years.
The incentive involves a two part process: 1) the creation of a Plant Rehabilitation or Industrial Development District, 2) the approval of an Industrial Facility Tax Certificate.
Upon issuance of an Industrial Facility Tax Certificate for a new project, within a Plant Rehabilitation or Industrial Development District, the company pays an abated Industrial Facilities Tax (IFT) on the new qualified investment, which is approximately 50% of the standard millage rate. The exemption applies only to the specific project that is the subject of the application. Any buildings and equipment that existed prior to construction of the new facility or are not specified on the application are not exempt. The incentive only abates taxable value on new improvements to the structural portion of a property, and new personal property added within the district. Personal property (i.e. equipment) that is currently being taxed anywhere within the state cannot receive the abatement.
If the project is rehabilitation of real property, the value of any preexisting obsolete property (as determined by a level 3 or 4 Assessor) is exempt from ad valorem property taxes but will be used as the base for the Industrial Facilities Tax.
Who - Eligible businesses include manufacturing plants, and related facilities such as office, engineering, and research and development. As well as, high-technology business operations such as advance computing, advanced materials, bio-technology, and information technology.
Why - PA 198 is used to encourage the creation and / or expansion of manufacturing and high technology business operations. The incentive is to assist companies in making significant investment and creating job opportunities within the city. It abates revenue that would not exist if not for the use of the incentive, leaving at least half of the new revenue on the tax rolls.
Cash Value of New Equipment = $1,000,000
Building Redevelopment Costs = $2,000,000
New Taxable Value Added = $1,500,000
(assumes 50% of true cash value of improvements and equipment)
Est. Tax Savings over 12 Years = $580,000
(estimate does not include depreciation of equipment)
Act 425 Intergovernmental Agreement for Development
What - Act 425 Agreements allow two or more local governments to cooperate and share the costs and benefits of economic development. For example, a City with excess capacity in utilities or special development incentives, can partner with a Township that has large undeveloped tracts of land. By doing so, both the City and Township can provide the ingredients that a business needs to grow. With the Agreement, both the upfront public costs of infrastructure to support the development and the new taxes it generates are shared by the City and Township. The two communities also can share the responsibilities of providing police, fire and other vital services to the new development.
Who - Any two or more local incorporated governments in Michigan can enter into an Act 425 Agreement. For example two Cities, three Townships or a City and Township are three possible combinations of parties to an agreement. The terms of the agreement are negotiable and provide the flexibility to fit most economic development situations.
Why - Michigan with its strong form of local government, has thousands of local governments. Today's competitive world makes it imperative that we cooperate regionally so we can continue to thrive economically. Also diminishing local tax revenues and a struggling economy necessitate efficiency in local government. Inter-governmental cooperation with the use of tools like the Act 425 Agreement is vital if we want to retain the high quality of life and economic opportunities we are accustom to in Michigan.
Personal Property Tax Abatement - PA 328 of 1998
What - PA 328 allows for the abatement of all taxes on new personal property investments in the city. The exemption includes only new personal property not previously subject to taxes in the state of Michigan. The length of the abatement is negotiable based on investment, job creation, and economic impact.
Who - Eligible businesses include: manufacturing, mining, research and development, wholesale trade and office operations. It is only available to businesses that locate within a distressed core community like the city of Lansing.
Why - PA 328 is used to encourage the creation and / or expansion of manufacturing, high technology, and business operations. The incentive is to assist companies in making significant investment and creating job opportunities within the city.
The Lansing EDC is approached by a company with patented technologies derived from research at Michigan State University, and they are looking for their first manufacturing facility to begin commercial production of their product. However, being a new company, most likely running on venture capital, they are attracted to locating in a township to save on their tax liability. Yet, the building and the work force in the city are clearly advantageous to business growth. The LEDC utilizes a P.A. 328 for 12 years to offset 100% of the company's personal property tax liability on the new equipment and secure the company in the location that is most advantageous for business growth.
Cash Value of New Equipment: $2,000,000
Estimated Tax Savings over 12 Years: $63,000 (assumes 50% of true cash value of improvements)
City of Williamston
Williamston DDA façade improvement grants
USDA Rural Development Loans
MEDC grants for façade improvements, job creation and training
Works closely with Ingham County for additional services
Delta Township will offer a PA198 Industrial Facilities Exemption (abatement) on eligible investment. For a substantial project, the Township will consider a Commercial Rehabilitation Exemption. We do not presently have a Downtown Development Authority, Corridor Improvement Authority, or similar tools in place for commercial property. Delta Township’s Community Development Department will coordinate all aspects of a project, to ensure that timelines are met, costs are controlled, and the experience is a positive one.
City of Mason
The Industrial Facilities Tax Abatement
Commercial Rehabilitation Act
Downtown Development Authority Façade Grant Program
DDA Business Loan Program
DDA Liquor License Program
Brownfield (Mason currently is utilizing Ingham County Brownfield Redevelopment Authority),
MDOT Category A economic development transportation grant program. We currently have two LDFA’s. The city is willing to discuss opportunities that could be fostered within the creation of a Local Development Finance Authority.
City of East Lansing
Brownfield Redevelopment - Tax increment financing is available for the redevelopment of contaminated, functionally obsolete or blighted properties. Eligible activities include environmental studies, clean-up activities, site preparation and infrastructure. These projects may also be eligible for Michigan Business Tax credit equal to 10-20 percent of eligible investment.
Downtown Redevelopment - The Downtown Development Authority (DDA) has access to tax increment financing that supports redevelopment of urban sites into mixed-use projects (retail, housing, entertainment, office space or a combination of uses). Redevelopment assistance may come in the form of public infrastructure, land assemblage and direct project support.
Loan Programs - The Downtown Development Authority (DDA) offers a Small Business Loan Program and Cultural Entrepreneurship Loan Program, which allows for loans of up to $20,000 for eligible business costs such as operating capital, inventory, leasehold improvements and other activities.
Personal Property Tax Abatement - The City can provide 100 percent abatement of personal property taxes for a period of up to 12 years for qualifying office or technology businesses. Property eligible for abatement includes equipment, furniture, computer systems and other taxable business assets other than real property. Download Application
Meridian Township's EDC is now partnering with the Mid-Michigan Entrepreneur Institute to establish a micro-loan program for businesses and entrepreneurs. The EDC has made a $2,000 contribution to the loan lost reserve fund making $10,000 available to Meridian Township businesses and entrepreneurs.
We do offer Industrial Facility Tax Abatement and the Commercial Rehab Abatement. We are also in the process of creating our TIF plan for our Corridor Improvement Authority that runs along BR-127 in our southern tier. The last item we have is Brownfields. Unlike Core Cities we can only use it to mitigate actual contamination.
Ingham County as an entity is not able to offer much in terms of direct incentives. The County does work to facilitate State programs and has been the recipient for CDBG Infrastructure grants on behalf of a company.
Through the Ingham County Brownfield Authority we are able to approve Brownfield Plans to enable a company to be eligible to apply for State Brownfield Programs. The County also can approve Tax Increment Financing plans, with a local jurisdictions approval, to offset the eligible expenses in an approved Brownfield Plan