Industrial Facility Tax Abatement

The Plant Rehabilitation and Industrial Districts Act, (known as the Industrial Facilities Exemption) PA 198 of 1978, as amended, provides tax incentive to manufacturers to enable renovation and expansion if aging facilities, assist in the building of new facilities, and to promote the establishment of high tech facilities. An Industrial Development District (IDD) or a Plant Rehabilitation District (PRD) must be created prior to initiating a project, the City of Burton currently has several districts already in place. An Industrial Facilities Exemption (IFE) certificate entitles the facility to exemption from ad valorem real and/or personal property taxes for a term for 1-12 years as determined by the local unit of government. This can lead to a reduction of what is paid in taxes for the property. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the state level by the Property Services Division and the Michigan Economic Development Corporation. The State Tax Commission (STC) is ultimately responsible for final approval and issuance of certificates. Exemptions are not effective until approved by the STC.

There is an application process to follow for the abatement. Please find below a link for that process, and a link to the State of Michigan where you can get more information along with the form that needs to be filed.

Application Process

State of Michigan