Tax Incentives & Financing

Detroit is competing with cities worldwide to attract new businesses and development. To keep the momentum going DEGC uses a toolkit of powerful incentives to compete with those offered by every major city in America.

 

Businesses looking to invest in Detroit through relocation or expansion are eligible for a number of different incentives including tax incentives and financing. Projects located anywhere in the city are eligible for these tax incentives. Many of these may be in addition to the benefits provided by Detroit’s many incentive zones, such as the Renaissance Zones or the Empowerment Zone.

 

The DEGC can help you identify and take advantage of these financing tools and tax incentives. Contact us today to discuss the details of your business operation and learn more about how we can connect you with available financing and tax incentives.

 

Tax Incentives

 

Renaissance Zones

 

Detroit’s Renaissance Zones total 1,477 acres in 16 distinct areas throughout the city. Qualified businesses located in Renaissance Zones pay essentially no state or local taxes for a given period of years.

 

Empowerment Zone

 

The Detroit Empowerment Zone covers an 18.35 square-mile area that cuts across southwest, central and near-east sections of the city. Qualified businesses in the Empowerment Zone may receive employer wage credits, higher deductions for depreciable property and tax-exempt bond financing. In addition, federal funds have been spent on direct services to help residents of the Zone learn and earn to improve the quality of their lives.  

 

Brownfield Redevelopment

 

State law gives the Detroit Brownfield Redevelopment Authority tools to redevelop blighted and/or functionally obsolete properties. Organizations redeveloping property declared as brownfields can earn state Michigan Business Tax credits, and may be reimbursed for some development expenses from tax increment financing. The tax increment bonds are paid off from increases in property taxes created by the new investment.  

 

Renewal Community

 

The Detroit Renewal Community encompasses 24.7 sq. mi. in northeast Detroit. Businesses locating there may be eligible for federal tax credits for new hires or existing workers who live in the Community. They also may be eligible for other federal tax credits or tax exemptions on certain capital gains and other benefits.  

 

Financing  

 

The DEGC manages loan programs such as:

 

For more information on tax incentives and available financing in Detroit, please contact us or visit the Michigan Citizens Research Council.