Tools & IncentivesCommunity Development Tools and Incentives: Brownfield Redevelopment Authority (Brownfield BRA) A municipality may create a Brownfield to develop and implement brownfield projects. Brownfield Single Business Tax Credit (Brownfield SBT) The Brownfield SBT provides an incentive in the form of a tax credit for eligible redevelopment investments on brownfield property. Brownfield Tax Increment Financing (Brownfield TIF) TIF allows Brownfields to utilize tax increment financing to implement brownfield redevelopment projects. A BID/PSD allows a city to collect revenues, levy special assessments, and issue bonds in order to address the maintenance, security and operation of that district. A BIZ may be created by private property owners of those parcels in a zone plan within a city or village. Community Development Block Grant (CDBG) The CDBG Program is designed to provide eligible local units of govermnent with grants to address economic or downtown infrastructure, economic development planning and unique / innovative project neeeds. Conditional Land Use Transfer (PA 425) PA 425 is the conditional land use transfer statute that allows one municipality the option of conditionally transferring land to another. Downtown Development Authority (DDA) The DDA provides for a variety of funding options, including tax increment financing, to fund public improvements in downtown districts and the ability to levy a limited millage to address administrative expenses. Local Development Financing Authority (LDFA) A LDFA allows a community to utilize tax increment financing to fund public infrastructure improvements. Neighborhood Enterprise Zone (NEZ) The NEZ program provides a tax incentive for the development and rehabilitation of residential housing. Obsolete Property Rehabilitation Act (OPRA) OPRA provides a tax incentive to assist in the redevelopment of older buildings in which a facility ia contaminated, blighted or functionally obsolete. Property Tax Abatement (PA 198) PA 198 is the primary tool local governments use as an incentive for companies to renovate and expand aging manuafcturing plants or to build new plants in Michigan. Personal Property Tax Relief in Distressed Communities (PA 328) PA 328 allows distressed communities to abate all new property taxes in certain geographic areas in order to spur economic development. Abatements include all millage, state and local. Tax Increment Financing Authority (TIFA) As of January 1, 1987, the State legislature decreed that “a new TIFA authority or authority district shall not be created and the boundaries of an existing TIFA authority shall not be expanded to include additional land.” If your community does not currently have a TIFA district, you are not allowed to create one. TIFA districts are designed to increase the property tax valuation of the area and to eliminate the causes of the decline in property values. Urban Land Assembly Program (ULA) The ULA provides financial asisstance in the form of loans to eligible cities for the acquisition of certain real property for economic development purposes, including industrial and commercial projects.
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