Tax Abatements for Commercial Development

There are two tax abatements that municipalities can use to attract new commercial development. Cities and villages are eligible to use commercial redevelopment tax abatements to encourage the replacement, restoration and new construction of commercial property in the downtown. New taxes can be abated for up to 12 years.

Cities, villages and townships are eligible to use the commercial rehabilitation tax abatements to encourage restoring or modifying commercial property by abating new property taxes for up to 10 years. Both incentives require that the community first establish the targeted property as either Commercial Redevelopment District or a Commercial Rehabilitation District, respectively.

Click here for a Commercial Redevelopment Act fact sheet; or click here for a Commercial Rehabilitation Act fact sheet.

Fernelius of Cheboygan, $3+ million expansion in 2011.

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NLEA’s Team of Economic Development Specialists can assist communities in finding the most effective approach to meet their needs. To learn more about our services and full range of community development solutions, please contact us at 231-582-6482, or by email.