What are tax abatements and how do I qualify?
Tax abatement is a tool for local governments to expand the economy. By encouraging new investment, tax abatement will increase or maintain the basic employment in the community, encourage redevelopment of deteriorated areas, and/or stimulate investment in specific areas of a community. Tax abatement is one of the primary incentives available to local government to promote economic development. The two primary tax abatement laws in Michigan are P.A. 198 (1974) and P.A. 328 (1998). The first applies to industrial properties while the latter deals with personal property. Tax abatements are provided mostly by local municipalities, but in Michigan the Michigan Economic Growth Authority (MEGA) can also give out credits and abatements to firms relocating or expanding within Michigan. To qualify, owners must make improvements to real property, install new manufacturing equipment, or install equipment used in research and development activities devoted directly and exclusively to experimental
