LANSING – Selected new developments in distressed communities would be able to capture any new income or sales taxes generated toward the development costs under legislation signed Thursday by Governor Rick Snyder.
The package, pushed by the Michigan Thrive Coalition, would allow creation of transformational brownfield plans. Developments under such plans would be able to capture new income taxes during the construction and for some time after. The materials used in the development also would be exempt from sales and use taxes.
“As part of Michigan’s reinvention, it’s important that we continue to revitalize our downtowns, waterfronts and main streets to attract and keep talent and business continually growing in our great state,” Mr. Snyder said in a statement announcing the bill signing. “This legislation is key to closing existing funding gaps surrounding brownfield sites and creating vibrant communities where Michiganders can live, work and play.”
The bills, SB 111, SB 112, SB 113, SB 114 and SB 115, were signed Thursday but had not been filed with the Office of the Great Seal as of press time.
“This legislation provides a tool to overcome the financial gaps that have prevented challenging brownfield projects from moving forward, meaning crumbling old buildings and abandoned industrial sites that have long plagued our communities will now have a chance for new life and investment,” Dan Austin, spokesperson for the coalition, said in a statement. “Today’s bill signing ushers in a new era in Michigan, and we cannot wait to see the billions in new development made possible by this legislation, and all of the jobs and residents that will come with it.”
This story was published by Gongwer News Service.
