The Industrial Facilities Exemption (also known as PA 198, IFT, or Industrial Facilities Tax) remains one of the most commonly-used economic development tools available to local governments in Michigan. This tool provides a 50 percent property tax abatement on new real and personal property investments for up to 12 years. Only certain types of businesses are eligible to receive the exemption, including most industrial firms and high tech companies. Local governments have discretion on whether to grant abatements, and the length of the abatements.
Many local governments around Michigan have developed policies related to the term and length of property tax abatements.
Why Consider This Now?
At the end of 2012, the Michigan Legislature passed a phase-out of the industrial personal property tax in Michigan, which could significantly affect the number of PA 198’s granted in the future. However, real property tax abatements will remain an option for local governments, and community partners have indicated a specific interest in potentially updating their economic development incentive policies.
This eBook serves as a review of PA 198 policies found throughout Michigan in an effort to provide best practices to local community partners.
The post eBook: Industrial Facilities Exemption (PA 198) Best Practices appeared first on Ann Arbor SPARK.
Source: SPARK
