January 13, 2016
There is good news for incentives in Michigan. Act 210 of 2005 – more commonly referred to as the Commercial Rehabilitation Act – has been extended to until Dec. 31, 2020. Gov. Snyder on Dec. 15 signed the bill continuing the legislation, which was set to expire at the end of 2015.
The Commercial Rehabilitation Act is a tool for the redevelopment and revitalization of challenging properties. The incentive is a property tax exemption, which effectively freezes the taxes on an approved project for a period of up to 10 years.
Eligible projects may include both commercial and multi-family residential properties, properties located in business areas or that are larger than three acres, rehabilitations of buildings fifteen years or older, and vacant property that had, in its recent history, a commercial building on the premises.
In addition, Senate Bill 673 was introduced to extend the Obsolete Property Rehabilitation Act (OPRA), or Act 146 of 2000, until December 31, 2026. The Act is set to expire at the end of this year.
The OPRA offers an incentive in the form of a property tax exemption that freezes taxes on an approved project for up to 12 years. Eligible projects include rehabilitation of contaminated, blighted, or functionally obsolete structures which will be redeveloped into a commercial or multifamily residential property.