If your business is in or allied to the manufacturing industry, your expansion or relocation project could qualify for any one or more of several tax exemptions available in Macomb County communities.

MCPED is the authoritative source for identifying which exemptions are available to you and for helping you to secure those exemptions. As a free and confidential service, staff will provide you with turn key management of the entire process, taking off of your hands the most time consuming and labor intensive components and serving as your direct liaison to the local community to which you must apply for these benefits.

Industrial Facilities Exemption

Under Michigan Public Act 198 (of 1974) manufacturers may qualify for an Industrial Facilities Exemption Tax, providing a roughly-50 percent reduction in their real and personal property tax liability on the purchase of new or expanded buildings; new machinery and equipment, furniture and fixtures.

The Act allows for the community, at the discretion of its governing body, to determine the length of years for which the IFET will be granted, up to a maximum of 12 years. To qualify, the real and/or personal property in question must be located in an Industrial Development District, established at the discretion of the local unit of government. IFET applications, while subject to local approval, are made to the State Tax Commission, which makes final determination on the granting of an Exemption Certificate.

Plant Rehabilitation District Exemption

Also provided for under PA 198 is a tax exemption for property located in a Plant Rehabilitation District. Here, property that is determined by a local assessor (Level III or IV) to be at least 50 percent “functionally obsolete” may qualify for a tax exemption. In order to qualify, an owner or lessee must make the necessary improvements to the property.

Having done so, the State Equalized Value of the property would be frozen at the level preceding the improvements, again, for a term not to exceed 12 year, at the discretion of the local unit of government. PRD Applications, while subject to local approval, are made to the State Tax Commission, which makes final determination on the granting of an Exemption Certificate.

Economically Distressed and Core Communities Exemption

Michigan’s PA 328 (of 1998) provides for a special class of communities, those that are defined as “Economically Distressed” and “Core Communities” to waive personal property taxes for new equipment that is purchased by eligible businesses. This Exemption of New Personal Property, just as with the other tax exemptions, is subject to local approval, applications are made to the State Tax Commission for final determination.

Air and Water Pollution Control Tax Exemption

Public Act 451 (of 1994) established both Air Pollution Control and Water Pollution Control Tax Exemptions. Under this act, a manufacturer may receive a tax exemption of 100 percent of the taxes on new air or water pollution control devices or systems that they purchase and install.

The exemption is available to the manufacturer for the life of the devises or systems. There is no local government approval necessary for this exemption. Applications are made to the Michigan Department of Treasury, but are reviewed by the Michigan Department of Environmental Quality. Exemption Certificates are granted only upon the MDEQ’s approval.