Detroit welcomes businesses from around the world and around the block by offering a variety of financial resources and incentives. These programs are specifically targeted to inspire economic growth for relocating or expanding businesses. From tax abatements and Brownfield plans to workforce development training, Detroit offers the solutions businesses need to be successful.

Renaissance Zones

Detroit’s Renaissance Zones total more than 1,200 acres in 12 distinct areas. Eligible businesses in these locations can receive a waiver from:

  • Non-debt real property tax
  • Non-debt personal property tax
  • Michigan personal income tax
  • Detroit income tax
  • Michigan’s 6 mill state education tax
  • City utility users tax act

*To be eligible, a business must be located in a Renaissance Zone and demonstrate job creation and new investment.

Brownfield Redevelopment

The Detroit Brownfield Redevelopment Authority was established to promote the revitalization of environmentally distressed and blighted areas in the city. Developers of properties that qualify as contaminated, blighted or functionally obsolete and are part of an approved Brownfield plan may be eligible for Tax Increment Financing for both environmental and non-environmental activities, such as:

  • Baseline environmental assessments
  • Due care activities
  • Lead or asbestos abatement
  • Demolition
  • Site preparation
  • Public infrastructure improvements
Commercial, Office and Mixed Use

Commercial Rehabilitation Exemption (PA 210) – Real Estate/Business Incentive

Tax exemption for commercial property rehabilitation for the primary purpose and use of a commercial business or a multi-family residential facility with 5 or more units. The value of improvements must be at least 10% of the true cash value of the property at the start of the rehabilitation.

  • Benefit:  Provides an exemption on the value of the improvements.  Excludes school millages
  • Up to 10-year term
  • Targeted area:  Citywide
  • Applicant must enter in a Tax Abatement Agreement with the City of Detroit.

Commercial Facilities Exemption (PA 255) – Real Estate/Business Incentive

Provides tax incentives for the redevelopment or new construction of commercial property for the primary purpose and use as a commercial business enterprise. The Commercial property must be zoned to allow for mixed use that includes high-density residential use.

  • Benefit:  Provides an exemption on the value of improvements of rehabilitated facilities and a reduction in taxes on new construction projects.
  • Up to 12-year term
  • Targeted area: Qualified downtown revitalization district
  • Applicant must enter in a Tax Agreement with the City of Detroit.

Obsolete Property Rehabilitation Exemption (PA 146) – Real Estate/Business Incentive

Provides tax incentives for the rehabilitation of commercial and commercial housing properties that will be rehabilitated to an economically efficient condition. The city assessor must deem that the property is obsolete, which includes contaminated, blighted or functionally obsolete property.

  • Provides an exemption on the value of the improvements.  Excludes school millages.
  • Up to 12-year term
  • Targeted area:  Citywide
  • Applicant must enter in a Tax Agreement with the City of Detroit.
Residential

Neighborhood Enterprise Zone (PA 147) – Real Estate Incentive

Provides an exemption for the development and rehabilitation of residential housing located within eligible distressed communities.

  • Benefit: New facilities are taxed at ½ non-Principal Resident Exemption state average tax rate.  Rehab properties are taxed at full rate that is frozen at tax year prior to certificate approval until the final three years. Tax rate is adjusted final three years.
  • Up 17-year term
  • Targeted area: Citywide
Industrial/Manufacturing

Industrial and Hi-Tech Tax Abatement (PA 198) – Business Incentive

Provides tax incentives to manufacturers to enable the renovation and expansion of aging facilities, assist in the building of new facilities and to promote the establishment of high tech facilities. Eligible facilities also include, engineering, R&D, or logistics operations.

  • Benefit:  Provides a tax exemption on the value of improvements
  • Up to 12-year term
  • Targeted area: Citywide
  • Applicant must enter in a Tax Agreement with the City of Detroit.

Renaissance Zones PA 376; Detroit -Next Michigan Development Act (PA 275) – Business Incentive

Allows the city to waive most taxes for businesses Certified as an Eligible Next Michigan Business (ENMB) and that moves products or services via “multimodal commerce”.  Multimodal commerce involves the movement of products or services via (2) or more modes of transportation (ie air, road, rail or water).

  • Benefit: Exempts the following: real property taxes, personal property taxes, local corporate income tax and utility users tax.  Excludes debt millages
  • Up to 10-year term
  • Targeted Areas
  • Applicant must enter in a Development Agreement with the City of Detroit.

 

Personal Property

New Personal Property Tax Exemption (PA 328) – Business Incentive

Business projects in manufacturing, mining, research and development, wholesale trade, and operations may be eligible for the abatement of all personal property taxes in targeted areas. Retail businesses and casinos are not eligible. Targeted areas include Renaissance Zones, enterprise zones, Brownfield redevelopment zones, empowerment zones, tax increment financing districts, local development financing districts, or a downtown development districts.

  • Benefit:  100% abatement on the value of new personal property.
  • Term: Varies based on award
  • Targeted area:  Citywide
  • Applicant must enter in a Tax Agreement with the City of Detroit.
MEDC Business Development Program-BDP

State sponsored performance based grants/loans for highly competitive project creating a minimum of 50 jobs. Statutory limit on any loan or grant is $10M depending on business case and need for the program.

MEDC Community Revitalization Program-CRP

State sponsored performance based grants/loans targeted for the renovation of blighted, functionally obsolete or historic resource sites within targeted investment areas. Will not exceed 25% of eligible investment.

MEDC Michigan Collateral Support and Loan Participation Programs

The Collateral Support Program and Loan Participation Programs seeks to enable companies to acquire the necessary financing that might otherwise be unavailable due to a collateral shortfall and/or cash flow shortages according to the lender’s analysis.

Various DEGC Low-Interest Loan Products

DEGC or affiliated entities provide subordinated debt to qualified businesses making capital improvements and to assist in the redevelopment, construction or rehabilitation of buildings within qualified investment areas.

Private sector gap financing tools

Invest Detroit and other local partners offer a wide range of financing tools to support business expansion and real estate development, the creation and retention of jobs, and the revitalization of distressed areas

Community Ventures Program

State sponsored program that subsidizes training and also provides wrap around services for companies hiring structurally under-employed individuals in Detroit.

Talent Development & Hiring Assistance

Detroit Employment Solutions Corporation offers recruitment assistance, readiness training, customized training and subsidies related to the various training programs.

Historic Tax Credits

Provides tax credits for the substantial, certified rehabilitation of certified historic structures for commercial, industrial and rental residential purposes

New Markets Tax Credits

Provides incentives that can be monetized for eligible projects benefitting targeted populations within designated low income census tracts.

EDA Public Works or Economic Adjustment

Highly competitive federal program that can provide federal match for eligible construction-related costs related to job-producing projects that meet a national objective. (May have significant time lag prior to disbursement of funds)

EPA Site Assessment Grants

Site assessment grants currently available through the Detroit-Wayne County Port Authority-led coalition.

EPA Clean-Up Grants

Highly competitive federal program that provide funding for a grant recipient to carry out cleanup activities at brownfield sites. (May have significant time lag prior to disbursement of funds)

EB5 Immigrant Investor Program

EB-5 Visas are awarded based on investment in new enterprises located in USCIS Regional Centers for economic growth.  New businesses must create 10+ full time jobs.  The program also requires a minimum investment of $500,000 within a high unemployment area.

Ready to Work Grant

Through ready to work partnerships with three or more employers, workforce investment boards and training providers, DOL will fund programs that can effectively recruit and serve long-term unemployed workers, specifically focusing on jobs where employers currently use large numbers of foreign workers on H-1B visas.  Applications are submitted once per year in February, but awards are not announced until mid-year.