What are tax abatements and how do they work?
In general, a “tax abatement” or Industrial Facilities Exemption Tax (IFET) is a 50 percent reduction in the real and/or personal property tax liability of a qualified business, for a period of up to 12 years (per Michigan Public Act 198 of 1974). The granting of the abatement and the term of years is determined at the discretion of the local unit of government. Other tax exemptions provided for by enabling legislation in the State of Michigan include plant rehabilitation, economically distressed / Core Communities, and air/water pollution control.
