COMMERCIAL REHABILITATION ACT EXTENDED
There is good news for incentives in Michigan! Act 210 of 2005, more commonly referred to as the Commercial Rehabilitation Act, was set to sunset on December 31st of this year. After multiple bills extending the sunset for the Act were not acted upon early in the year, Senate Bill 0556 of 2015, sponsored by Senators Ken Horn and Steven Bieda, was passed by the Senate, by the House, and was signed by Governor Snyder on December 15, 2015. This bill extends the sunset for the Commercial Rehabilitation Act until December 31, 2020.
The Commercial Rehabilitation Act is an immensely useful 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 ten 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 which had, in its recent history, a commercial building on the premises. ASTI can assist you with evaluating and obtaining this incentive.
In other good news…
Senate Bill 673 was introduced this week to extend the Obsolete Property Rehabilitation Act, or Act 146 of 2000, until December 31, 2026. Currently, the Act is set to sunset on December 31, 2016. The Obsolete Property Rehabilitation Act offers an incentive in the form of a property tax exemption which freezes the taxes on an approved project for a period of up to twelve years. Senator Steven Bieda, Rick Jones, John Proos, Jim Marleau, Jack Brandenburg, and Wayne Schmidt sponsored the Bill, which was referred to the Committee on Economic Development and International Investment on December 15, 2015. Eligible projects include rehabilitation of contaminated, blighted, or functionally obsolete structures which will be redeveloped into a commercial or multifamily residential property. ASTI can assist you with evaluating and obtaining this incentive.
The federal New Markets Tax Credit is certain to receive an extension of five-years. The New Markets Tax Credit Extension Act of 2015, sponsored in the House by Representatives Tiberi of Ohio, Neal of Massachusetts and Reed of New York, and Senators Blunt of Missouri, Schumer of New York, Daines of Montana, and Cardin of Maryland, was introduced in February of this year. This week, Congressional leaders and the White House have agreed to extend the incentive. The New Market Tax Credit is a 39 percent federal tax credit, realized over a seven-year-period, which incentivizes development in distressed communities.
The talented staff ASTI Environmental has extensive experience obtaining redevelopment incentives for renovation and new construction projects throughout the State of Michigan. Contact us today if you are interested in a free preliminary evaluation at (810) 225-2800 or visit our web page at www.asti-env.com