SMOOTH Development assists developers, property owners, local units of government, and economic development organizations obtain and creatively utilize various tax incentive and financing mechanisms to facilitate real estate development and redevelopment. Programs exist to aid a variety of projects, including single- and multiple-family residential, retail, office, commercial, industrial, and public infrastructure and public facilities. Through a comprehensive evaluation of each project, the appropriate programs can be selected to maximize benefits to the client. If you have a project you'd like to discuss, please contact us for a free consultation so that we may determine which programs might apply to your project.

Incentive Programs

Specific programs that we may assist you with include, but are not limited to, the items listed below. For specific examples of projects where various incentives were obtained, please click Here.

Brownfield Redevelopment Plans. Michigan Public Act 381 of 1996 qualifies properties that are contaminated, functionally obsolete, or blighted, for tax increment financing (TIF). With TIF, a Plan may capture property taxes to reimburse a developer for project expenses related to environmental investigations and cleanup, demolition, lead and asbestos abatement, site preparation improvements (including legal and engineering expenses), and public infrastructure improvements.
Additional Information - Overview of Brownfield Tax Increment Financing & FAQ
Example of an approved Brownfield Redevelopment Plan

Brownfield Michigan Business Tax (MBT) Credits. Michigan Public Act 36 of 2007, qualifies certain properties for an MBT Credit of 12.5%-20% of eligible project investment, including demolition, construction, restoration, alteration or renovation, site improvements, public infrastructure improvements, additional of machinery, equipment and fixtures, and some professional service costs, such as architectural, engineering and surveying.
Additional Information - MBT Summary
Additional Information - MBT Act

Obsolete Property Rehabilitation Act (OPRA). Michigan Public Act 146 of 2000, provides an incentive to rehabilitate older, functionally obsolete buildings by capping the taxable value at the pre-rehabilitation value for up to 12 years. The taxes paid on new improvements are limited to school taxes only (typically 3-12 mills), instead of all local taxes (typically 30-50 mills), resulting in tax savings of 30%-60% (depending on the value of improvements). Only certain eligible local units of government may issue an OPRA exemption certificate.
Example of Tax Savings

Additional Information - OPRA Overview & FAQ
OPRA Application & Program Information

Commercial Rehabilitation Act (CRA). Michigan Public Act 210 of 2005, as amended, provides a tax incentive for the rehabilitation of obsolete commercial property for use as a multifamily residential building, commercial/retail business, office, or warehouse/distribution use. The tax savings from the program are similar to the OPRA program (30%-60% depending on the value of improvements), except that an exemption may be issued for a maximum of up to 10 years, and any local unit of government may issue a CRA exemption certificate for eligible property.
Additional Information - CRA Summary

Commercial Redevelopment Act (CRDA). Michigan Public Act 227 of 2008 (an update of PA 255 of 1978) provides an incentive for new, replacement, and restored buildings in cities and villages. For eligible building and land improvement, taxes paid are reduced by approximately 50%. A local unit of government may issue a CRDA exemption for 1-12 after completion of the building.
Additional Information - CRDA Summary

Neighborhood Enterprise Zones (NEZ). Michigan Public Act 147 of 1992 provides an incentive to develop or rehabilitate housing located in certain distressed communities. For new construction, a millage rate of 1/2 the statewide average (approximately 17 mills) is levied against the taxable value, instead of the full millage rate (ranging from 30-60 mills), resulting in tax savings of 50% or more. An NEZ certificate may be issued by a local unit of government for 6-17 years.
Example of Tax Savings
Additional Information - NEZ Overview & FAQ
NEZ Application & Program Information

Industrial Facilities Exemption Certificates (IFEC). Michigan Public Act 198 of 1974 provides a tax incentive to manufacturers to enable renovation and expansion of existing facilities, build new facilities, and establish high-technology facilities. For new construction and equipment, machinery and fixtures, taxes paid are reduced by approximately 50%. A local unit of government may issue an IFEC for 1-12 after completion of the building.
Example of Tax Savings
IFEC Application & Program Information

100% New Personal Property Exemptions. Michigan Public Act 328 of 1998 provides 100% property tax exemption for all new personal property for specific business located in eligible distressed communities. Specific businesses that are eligible include manufacturing and office uses. The local unit of government may issue an exemption for any number of years (12-20 years is most typical).
Additional Information - Act 328 Overview & FAQ
Additional Information - Act 328 Summary
Act 328 Application & Program Information

Historic Preservation Tax Credits. Through a combination of state and federal programs, a tax credit of up to 40% is available for rehabilitation of certified historic structures, which are generally buildings constructed before 1936, and on the National Register of Historic Places or contributing to a registered historic district. Non-historic buildings built before 1936 qualify for a 10% tax credit.
Additional Information - State of Michigan Historic Preservation Tax Incentives
Additional Information - Federal Historic Preservation Tax Incentives