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  • Funding and Incentives - Michigan Economic Development Corporation

  • Review Fact Sheets Alphabetically by Title
    Fact sheets, listed alphabetically, describing incentives and development programs in Michigan:

    - A -

    - B -

    Border County Incentives
    Eligible new warehouse, distribution, or logistics facilities that locate in a county that borders another state or Canada may qualify for tax incentives.
    (revised: 4.10.2009)
    Brownfield Redevelopment Authority (P.A. 381)
    (revised: 8.1.2011)
    Business Improvement District / Principal Shopping District / Business Improvement Zone (BID/PSD/BIZ)
    (revised: 1.25.2010)

    - C -

    Capital Access Program
    (revised: 12.15.2010)
    Community Assistance Team (CATeam) - Specialist Map
    (revised: 1.31.2011)
    Community Development Block Grant (CDBG) - Downtown Public Infrastructure
    The Community Development Block Grant (CDBG) - Downtown Public Infrastructure portion of the program provides special funding initiatives in traditional downtowns for eligible infrastructure improvements that are tied to new commercial/mixed-used development activities, which require the additional infrastructure to create new economic opportunities and job creation activity within a downtown.
    (revised: 11.1.2011)
    Community Development Block Grant (CDBG) - Blight Elimination
    The Community Development Block Grant (CDBG) - Blight Elimination program provides grants for property acquisition, clearance/demolition, historic preservation, and building rehabilitation to assist in the elimination of spot blight that is not located in a designated slum or blighted area.
    (revised: 9.30.2011)
    Community Development Block Grant (CDBG) - Downtown Facade Improvements
    Development Block Grant (CDBG) - Facade improvements grants are available for communities that seek to target areas of traditional downtowns for facade improvements which will have a significant impact on the downtown/community.
    (revised: 11.1.2011)
    Community Development Block Grant (CDBG) - Farm-to-Food
    Community Development Block Grant (CDBG) – Farm-to-Food grants are available for eligible small cities, townships, and villages of less than 50,000 in population, and counties with a population of 200,000 or less to construct, rehabilitate, acquire, expand or improve a facility for the support of a three- or four-season farmers market.
    (revised: 1.23.2012)
    Community Development Block Grant (CDBG) - Signature Building Acquisition Grant
    The Community Development Block Grant (CDBG) - Signature Building Acquisition Grant program enables a community to secure a building that is a focal point within the downtown for commercial rehabilitation purposes that will result in job creation and would become an asset to the overall downtown area.
    (revised: 11.1.2011)
    Centers of Energy Excellence (COEE) Program
    Centers of Energy Excellence grants promote the development, acceleration, and sustainability of energy sectors in Michigan.
    (revised: 2.8.2010)
    Certified Business Parks
    This fact sheet describes the Certified Business Parks program, jointly administered by the Michigan Economic Developers Association (MEDA) and the Michigan Economic Development Corporation.
    (revised: 1.14.2009)
    Chief Compliance Officer, The Office of the
    Describes the mission and responsibilities of the Office of the Chief Compliance Officer (Michigan Strategic Fund and the Strategic Economic Investment and Commercialization).
    (revised: 12.20.2010)
    Commercial Redevelopment Act (P.A. 255)
    This program encourages the replacement, restoration and new construction of eligible commercial property by abating the property taxes generated from new investment for a period up to 12 years.
    (revised: 9.23.2010)
    Commercial Rehabilitation Act (P.A. 210)
    This program encourages rehabilitation of eligible commercial property 15 years or older by abating the property taxes generated from new investment for a period up to 10 years. The primary purpose of the facility must be for operation of a commercial business enterprise or multifamily residential use.
    (revised: 12.14.2011)
    Community Development Block Grant (CDBG) Program
    Community Development Block Grant (CDBG) program provides grants to eligible counties, cities, villages, and townships, usually with populations under 50,000, for economic development, community development, and housing projects.
    (revised: 1.18.2012)
    Conditional Land Use Transfer (P.A. 425)
    Eligible cities and townships may enter into conditional land use transfer statute that allows one municipality the option of conditionally transferring land to another, thus gaining access to certain economic and community development incentives.
    (revised: 2.11.2010)
    Consultation Education Training (CET) Services - MIOSHA
    (revised: 10.29.2008)
    Consultation Education Training (CET) Services - MIOSHA
    (revised: 10.29.2008)
    Core Communities
    To spur private development in its urban communities and traditional centers of commerce, the Core Communities designation target critical needs of older communities through new housing development, redevelopment of obsolete facilities and development of contaminated properties. The Core Communities designation provides the community with three economic development tools: brownfield redevelopment incentives, neighborhood enterprise zones, and rehabilitation exemptions.
    (revised: 11.15.2010)
    Corridor Improvement Authority (P.A. 280)
    The Corridor Improvement Authority assists communities with funding improvements in commercial corridors outside of their main commercial or downtown areas.
    (revised: 11.18.2008)

    - D -

    Michigan Defense Center (formerly known as the Defense Contract Coordination Center or DC3)
    The Michigan Defense Center and the Procurement Technical Assistance Centers (PTACs) work together to increase the number of Michigan companies winning federal contracts.
    (revised: 1.11.2012)
    Downtown Development Authority
    Downtown Development Authority (DDA) act is a catalyst in the development of a community's downtown district and provides for a variety of funding options including tax increment financing mechanism, and the ability to levy a limited millage to address administrative expenses.
    (revised: 3.29.2010)

    - E -

    Emerging Technologies Fund (ETF)
    The Michigan Emerging Technologies Fund (ETF) expand funding opportunities for eligible Michigan technology-based small businesses in the federal innovation research and development arena.
    (revised: 9.5.2008)
    Environmental Assistance Program
    (revised: 1.14.2009)
    Equity Capital
    This fact sheet gives the basic of equity capital, and includes a list of resources for firms looking for equity capital investment.
    (revised: 3.13.2009)

    - F -

    - H -

    Historic Neighborhood Tax Increment Financing Authority (HNTIF)
    A Historic Neighborhood Tax Increment Financing Authority may be established to fund residential and economic growth in local historic districts. An authority may also issue bonds to finance these improvements.
    (revised: 11.7.2008)

    - I -

    Industrial Property Tax Abatement (P.A. 198)
    Industrial property tax abatements provide incentives for eligible businesses to make new investment in Michigan. These abatements encourage Michigan manufacturers to build new plants, expand existing plants, renovate ageing plants, or add new machinery and equipment. High-technology operations are also eligible for the abatement.
    (revised: 2.26.2009)

    - L -

    Local Development Financing Act (LDFA) (P.A. 281)
    The Local Development Financing Act allows a city, village or urban township to utilize tax increment financing to fund public infrastructure improvements – such as sewer and water lines, and roads – to promote economic growth and job creation.
    (revised: 3.8.2011)

    - M -

    Michigan Business Ombudsman
    The Michigan Business Ombudsman Office provides impartial, independent and confidential assistance in resolving disputes and investigating complaints against state government agencies.
    (revised: 4.9.2009)
    Michigan Business Tax (MBT) - Booklet
    Describes the Michigan Business Tax and credits against it that may be available.
    (revised: 4.1.2009)
    Michigan Business Tax (MBT) - Overview
    Describes the Michigan Business Tax.
    (revised: 4.1.2009)
    Michigan Collateral Support Program
    The Michigan Collateral Support Program supplies cash collateral accounts to lending institutions to enhance the collateral coverage of borrowers. To be eligible, the company must fall under the definition of a firm which may be eligible for a Michigan Economic Growth Authority tax credit.
    (revised: 8.12.2011)
    Michigan Loan Participation Program
    The Michigan Loan Participation Program participates with lenders to finance diversification projects when faced with eligible borrower companies whose projected cash flows are considered speculative by the lender.
    (revised: 8.12.2011)
    Michigan Manufacturing Technology Center (MMTC)
    (revised: 2.25.2011)
    Michigan NextEnergy Authority
    The Michigan NextEnergy Authority (MNEA) promotes the development of alternative energy technologies and provides tax incentives for business activities and property related to the research, development and manufacturing of those technologies.
    (revised: 6.10.2010)
    Michigan Technical Education Centers (M-TEC)
    Eighteen state-of-the-art Michigan Technical Education Centers℠ (M-TECs) are located within the Michigan community college system. They provide an outstanding statewide educational, training, and workforce development infrastructure for Michigan's businesses.
    (revised: 11.23.2010)
    Michigan Timely Application & Permit Service (MiTAPS)
    (revised: 1.8.2009)

    - N -

    Neighborhood Enterprise Zone
    The Neighborhood Enterprise Zone Program provides a tax incentive for the development and rehabilitation of residential housing in communities where it may not otherwise occur.
    (revised: 3.29.2010)
    Neighborhood Improvement Authority
    A Neighborhood Improvement Authority (NIA) may be established, and may use its funds for residential and economic growth in residential neighborhoods. An authority may also issue bonds to finance these improvements.
    (revised: 11.5.2008)

    - O -

    Obsolete Property Rehabilitation Act (OPRA)
    Obsolete Property Rehabilitation Act provides for a tax incentive to encourage the redevelopment of obsolete buildings that are contaminated, blighted or functionally obsolete. The goal is to rehabilitate older buildings into vibrant commercial and mixed-use projects.
    (revised: 2.11.2011)

    - P -

    Personal Property Tax Relief in Distressed Communities (P.A. 328)
    Personal Property Tax Relief in Distressed Communities allows distressed communities, county seats and certain border county communities to abate personal property taxes on new investments made by eligible businesses.
    (revised: 2.11.2010)
    Private Activity Bond Program (former IDRB)
    Private Activity Bonds are a source of financial assistance to economic development projects in Michigan. They provide profitable firms with capital cost savings stemming from the difference between taxable and tax-exempt interest rates.
    (revised: 1.12.2012)
    Procurement Technical Assistance Centers (PTAC)
    Procurement Technical Assistance Centers (PTACs) assist companies in getting government contracts. They assist throughout the entire procurement process from pre-award to post-award.
    (revised: 1.6.2011)

    - R -

    Michigan - Ready for Alternative Energy
    (revised: 9.25.2009)
    Redevelopment Liquor License (P.A. 501)
    The Liquor Control Commission may issue new public on-premises liquor licenses to local units of government for businesses located in either a Business District or City Redevelopment Area. These licenses are in addition to those quota licenses allowed by the Michigan Liquor Control Code.
    (revised: 1.4.2011)
    Renaissance Zones®

    Renaissance Zones® are regions of Michigan designated as virtually tax free for any business or resident presently in or moving to a zone. The zones provide selected communities with a market-based incentive of no state or local taxes to encourage new jobs and investment.

    There are additional specialized Renaissance Zones available for designation. These types of zones are facility or industry specific. Specialized zones are potentially available for firms doing business in the agricultural processing, renewable energy, forest products processing and tool and die industries.

    (revised: 6.28.2011)
    SBA Certified Development Company (504) Loans
    The U.S. Small Business Administration's (SBA) program provides small- and medium-sized businesses with long-term fixed rate financing for the acquisition or construction of fixed assets. Businesses must have a tangible net worth of less than $7.5 million and an average net profit of less than $2.5 million for the past two years.
    (revised: 1.6.2012)
    Required Workplace Posters
    This fact sheet lists the posters that must be displayed in the workplace. These posters can be obtained through the Department of Energy, Labor and Economic Growth or from the U.S. Department of Labor.
    (revised: 4.1.2009)

    - S -

    SBA Certified Development Company (504) Loans
    The U.S. Small Business Administration's (SBA) program provides small- and medium-sized businesses with long-term fixed rate financing for the acquisition or construction of fixed assets. Businesses must have a tangible net worth of less than $7.5 million and an average net profit of less than $2.5 million for the past two years.
    (revised: 1.6.2012)
    Small Business Administration Loan Programs
    Overview of several loan and loan guaranty programs made available through the Small Business Administration.
    (revised: 8.13.2008)
    Michigan SmartZone℠ Network
    SmartZones provide distinct geographical locations where technology-based firms, entrepreneurs and researchers locate in close proximity to all of the community assets that assist in their endeavors. SmartZone technology clusters promote resource collaborations between universities, industry, research organizations, government and other community institutions, growing technology-based businesses and jobs.
    (revised: 6.2.2010)

    - T -

    Tax Breaks and Exemptions - What Small Business Should Know
    Entrepreneurs and small business owners must pay close attention to the fundamentals of taxation and business costs to participate in a competitive market. Below are some highlights that business owners should review and, as necessary, discuss with a tax preparer, business consultant, or tax attorney.
    (revised: 8.19.2009)
    Tax Exemptions for Michigan Companies
    Various sales and property tax exemptions in Michigan help reduce the tax liability for companies. Available tax exemptions are outlined in this fact sheet. Businesses should discuss these tax exemptions with their tax preparer, CPA, or tax attorney, as needed.
    (revised: 10.15.2009)
    Tax Increment Financing Authority (TIFA)
    The Tax Increment Finance Authority (TIFA) helps eligible cities to stop the decline of property value in a specific area. In addition, TIFA districts are designed to increase the property tax valuation of the area and to eliminate the causes of the decline in property values. In short, TIFA districts promote growth in a specific area within a city.
    (revised: 10.31.2008)
    Taxable Bond Financing
    Taxable Bond Financing provides small-and medium-sized companies access to public capital markets normally available to larger companies.
    (revised: 1.17.2012)
    Tool & Die Recovery Zones
    Eligible businesses located in a Recovery Zone are eligible for an exemption, deduction or credit on the following taxes: Michigan Business Tax (MBT), state education tax, personal and real property taxes, and local income tax where applicable.
    (revised: 6.28.2011)

    - U -

    Unemployment Insurance Services
    This fact sheet gives an overview of Michigan's Unemployment Insurance tax.
    (revised: 4.14.2009)

    - W -

    Water Resource Improvement - Tax Increment Financing Authority (TIFA)
    A Water Resource Improvement – Tax Increment Financing Authority may be established around an inland lake. A authority may use its funds to enhance water quality, water dependant natural resources and access to an inland lake.
    (revised: 2.11.2010)
    Workers' Compensation Cost Control Service
    The Workers' Compensation Cost Control Service assists employers in designing and implementing strategies for minimizing their costs of workers' compensation coverage. This program also benefits employees by stressing the importance of injury prevention and early return-to-work programs, thereby minimizing the suffering and lost income, which result from work-related disabilities.
    (revised: 12.28.2011)

    Summary descriptions are provided for ease of reference for the reader. For eligibility details and conditions of each program or initiative listed here, please download the fact sheet, or contact us. Please remember that this resource is a living document/work in progress and requires continuous updating to reflect changes in law and/or programs. This information is not intended to be, and should not be, regarded or act as a substitute for legal or other professional advice or opinion.