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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.

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.

Download the Commercial Rehabilitation Act Tax Document for more information.

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.

Download the Commercial Redevelopment Act  for more information.

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

Download the Neighborhood Enterprise Zone Act for more information.

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.

Download the Obsolete Property Rehabilitation Act for more information.