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Business Incentives
Wayne County EDGE has one of the most sophisticated and aggressive economic expansion and attraction programs in the United States. Our staff is dedicated to championing your business venture from concept to groundbreaking. We strongly encourage you to contact our office directly and speak to our development staff so that you can understand what EDGE can do for you.
There are a variety of state and federal incentive programs available to new and expanding businesses that locate in Wayne County. These include tax credits and abatements of state property taxes, the Michigan Business Tax, and personal income tax. There are also tax credit programs that encourage expenditures in research and development and certain capital expenditures including pollution control equipment. Michigan also has specific incentive programs for battery manufacturing, the film industry, and other targeted growth sectors.
Additionally, EDGE's Land Bank TURBO program offers additional tax breaks for businesses that make significant investments in Wayne County. TURBO reimburses investors by giving cash back to property owners who make significant real estate investments in Wayne County.
Jump to:
- Wayne County Incentives
- Michigan Incentives — Job Creation & Property Investment
- Michigan Incentives — Special Zones & Authorities
- Michigan Incentives — Industry Specific
- Michigan Incentives — Capital Investments
- Federal Incentive Programs
WAYNE COUNTY INCENTIVES
Land Bank / TURBO Program
The Wayne County Land Bank TURBO is unique within the State of Michigan. TURBO can help relieve the property tax burden of businesses and developers during the first few years of development and construction.
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Brownfield Program
EDGE & the Wayne County Brownfield Redevelopment Authority can assist in developing brownfield plans, securing Michigan Brownfield Tax credits and tax increment financing, and with securing brownfield cleanup funds from the USEPA.
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Renaissance Zones
Renaissance Zones are designated tax-free zones scattered across Michigan. A business located in one of these zones is exempt from virtually all state and local taxes attributable to the activity undertaken within the zone.
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SmartZones
SmartZones are designed to benefit and stimulate technology-related businesses. There are two locations in Wayne County that have been designated SmartZones: at TechTown in Detroit and in the Pinnacle Aeropark, south of Detroit Metro Airport.
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Michigan NextEnergy Authority
NextEnergy is an alternative energy business incubator located in Midtown Detroit. Businesses that engage in research, development, or manufacturing of alternative energy are eligible for an MBT credit or exemptions from the General Property Tax Act.
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MICHIGAN INCENTIVES — Job Creation & Property Investment
Michigan Economic Growth Authority (MEGA) Tax Credits
The MEGA Job Creation Tax Credit provides a Michigan Business Tax Credit for businesses that create or retain jobs in Michigan. Businesses in a variety of industries including high-tech sectors are eligible for MEGA credits.
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Industrial Property Tax Abatement (P.A. 198)
Any local government in Michigan may offer 50 percent property tax abatements for new construction and equipment related to manufacturing and high technology business activity for up to 12 years.
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Personal Property Tax Abatement (P.A. 328)
Local governments can offer a 100 percent property tax exemption for all new personal property acquired by businesses that are engaged primarily in manufacturing, research, or office operation.
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Commercial Property Rehabilitation Tax Exemption
This tax exemption "freezes" the taxable value of a building for up to ten years. The building or group of contiguous buildings must be at least 15 years or older and the property must fall within a Commercial Rehabilitation District.
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Obsolete Property Rehabilitation Tax Exemption
Commonly known as "OPRA," this incentive freezes the value added to the building as a result of the rehabilitation project, exempting the building from most property taxes for up to 12 years.
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MICHIGAN INCENTIVES — Special Zones & Authorities
Tool & Die Recovery Zone
A business can obtain an exemption from the Michigan Business Tax, state education tax, personal and real property taxes, and local income tax for locating in a Tool and Dire Renaissance Recovery Zone. Taxes can be abated up to 15 years.
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Neighborhood Enterprise Zone
Owners of residential property in a locally designated Neighborhood Enterprise Zone can have their property taxes reduced for the development and rehabilitation of residential housing.
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Border County Incentives
A new warehouse, distribution or logistics facility located in a county that borders another state or Canada can receive a 50% reduction in property taxes. At least 90% of the facility must be used for warehousing, distribution, or logistical purposes.
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MICHIGAN INCENTIVES — Industry Specific
Advanced Battery Credit
In an effort to advance the alternative energy and electric vehicle industry, Michigan Business Tax (MBT) credits are available for 50% of the capital investment expenses related to battery manufacturing including anode and cathode manufacturing assembly.
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Anchor District Credit
Michigan Business Tax (MBT) credits are available to businesses that can influence suppliers and customers to expand or locate in Michigan. The credit is limited to 5% of the taxable value of investments made by the customers or suppliers.
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Anchor Jobs Credit
A Michigan Business Tax credit is available for the payroll of an "anchor company's" customers or suppliers which create new qualified jobs and which can influence the business decisions and site location of qualified suppliers and customers.
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Defense Contracting Tax Credit
A refundable Michigan Business Tax (MBT) credit is available to companies which create jobs through the procurement of federal contracts from the Department of Defense, Department of Energy, or the Department of Homeland Security.
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Michigan Film Office Incentives
Eligible production companies are entitles to a refundable and assignable Michigan Business Tax (MBT) credit of up to 42% of the amount of the eligible production company's expenditures incurred in Michigan.
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MICHIGAN INCENTIVES — Capital Investments
MBT Investment Tax Credit
The MBT makes available an investment tax credit (ITC) equal to 2.9% of the cost of net new capital assets. The ITC applies to purchases of depreciable real and personal property.
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Michigan Research & Development Tax Credit
Michigan provides both a research and a development tax credit. The credit is equal to 1.9% of a taxpayer's research and development expenses, as defined in the federal Internal Revenue Code.
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Biofuel Tax Credit
Owners of a service station can claim a Michigan Business Tax (MBT) credit equal to 30 percent of the cost of converting fuel-delivery systems to provide E-85 or qualified biodiesel blends, or to add new pumps that provide those fuels.
Agricultural Machinery for Biomass Energy
New-generation agricultural machinery that can harvest grains and other crops at the same time it harvests biomass used to produce energy are exempt from sales, use, and property taxes.
Other Tax Exemptions
State law exempts inventory, pollution control equipment, and certain tools, dies, jigs, and fixtures from local property taxes. The state sales tax is not levied on the purchase of machinery and energy used in manufacturing.
FEDERAL INCENTIVE PROGRAMS
New Market Tax Credits (NMTC)
When an investor makes a qualified equity investment in a Community Development Entity (CDE), they receive the right to claim New Market Tax Credits on a proportion of the investment over a 7-year period.
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SBA 504 Loan Program
A program of the Small Business Administration, the SBA 504 Loan Program is for small and medium sized businesses where low cost financing will help companies create or retain jobs and expand business ownership opportunities.
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