Monday, January 05, 2004
Tax Credit Approval Process Moved to MEDC
In the past, the Michigan Department of Treasury administered brownfield SBT credit requests involving projects with under $10 million in private investment. The requests were processed on a first- come-first-served basis. As the demand for the credits has begun to outstrip the limited number allowed by statute, the Governor recognized a need to prioritize projects to assure that those with the greatest impact on the community are approved.
The MEDC, through the Michigan Economic Growth Authority (MEGA), will now decide on all brownfield SBT applications.
Credits will be awarded to projects that best meet the following criteria:
- The host community must make a reasonable contribution to the project through local funding sources including tax increment financing (TIF) and property tax abatements
- reusing existing facilities and preserving and creating new jobs
- The qualified project must also demonstrate the critical need for the SBT credit proving that all other forms of financing have been exhausted and that the project would not happen without the credit.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.