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Brownfield MBT 2007 Review

Brownfield Redevelopment Michigan Business Tax Credit Update Michigan Economic Development Corporation www.themedc.org www.michiganadvantage.org. Brownfield MBT 2007 Review. Large Credits 11 projects, $1.3 billion investment Small Credits 27 projects, $156 million investment Mini Credits

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Brownfield MBT 2007 Review

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  1. Brownfield Redevelopment Michigan Business Tax Credit UpdateMichigan Economic Development Corporationwww.themedc.orgwww.michiganadvantage.org

  2. Brownfield MBT2007 Review • Large Credits • 11 projects, $1.3 billion investment • Small Credits • 27 projects, $156 million investment • Mini Credits • 12 projects, $15 million investment

  3. Brownfield MBT • Brownfield Redevelopment Tax Credits included in new Michigan Business Tax • Section 437 of Michigan Business Tax • PA 36 of 2007, Senate Bill 94

  4. Brownfield MBTPROPOSED CHANGES • These changes are not signed into law. • Included in HB 5511, which has passed the House. • Currently in Senate Economic Development and Regulatory Reform Committee

  5. Brownfield MBT Refundable Brownfield Tax Credit • Credits that exceed a qualified taxpayers liability would be refunded at 75% of the amount that exceeds the liability

  6. Brownfield MBT Increase Tax Credit Percentage • Increase Tax Credit to 12.5% of the Eligible Investment Increase Program Efficiency • Limit eligible investment to project hard costs

  7. Original 10% $50,000 investment $20,000 exterior $10,000 interior $10,000 machinery $10,000 soft costs $50,000 Eligible Inv. Total credit = $5,000 New 12.5% $50,000 investment $20,000 exterior $10,000 interior $10,000 machinery $10,000 soft costs (not eligible) $40,000 Eligible Inv. Total credit = $5,000 Brownfield MBT

  8. Brownfield MBT Urban Redevelopment • Up to 15% Tax Credit for Urban Development Area Projects • Urban Development Area Projects include Downtowns or traditional historic commerce centers of Qualified Local Units of Government

  9. Brownfield MBT Urban Development Area Projects • Increases Density • Promotes Mixed-Use Development • Promotes Sustainable Development • Addresses Area Wide Redevelopment • Addresses Underserved Markets of Commerce

  10. Brownfield MBT Additional Changes • Increases Number of Large Credits to 20 • Combines “Small” and “Mini” Allocation into one $40 million allocation • Allows for Assignments of Tax Credits for Projects Approved under MBT • ???

  11. Brownfield Training National Brownfield Conference May 5-7, Cobo Center, Detroit www.brownfields2008.org

  12. Contact:Peter Anastor517-373-9014anastorp1@michigan.orgJared Belka517-241-4801belkaj@michigan.orgJoe Martin517-241-8378martinj11@michigan.org

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