Brownfield Redevelopment Discussion Peter Anastor Michigan Economic Development Corporation www.themedc.org www.michiganadvantage.org
May 26, 2015
Brownfield Redevelopment Discussion
Peter Anastor
Michigan Economic Development Corporation
www.themedc.org
www.michiganadvantage.org
Brownfield TIF Changes
• Use of School Tax Capture extended to December 31, 2012
• Demolition and Lead & Asbestos Abatement Available Statewide
• Funds Available for Local Administration Increased from $75,000.
• Large Credits
– 11 projects, $1.3 billion investment
• Small Credits
– 27 projects, $156 million investment
• Mini Credits
– 12 projects, $15 million investment
Brownfield MBT 2007 Review
• Brownfield Redevelopment Tax Credits included in new Michigan Business Tax
• Section 437 of Michigan Business Tax
• PA 36 of 2007, Senate Bill 94
Brownfield MBT
• 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
PROPOSED CHANGES
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
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
Brownfield MBT
Brownfield MBT
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
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
Brownfield MBT
Urban Development Area Projects
– Increases Density– Promotes Mixed-Use Development– Promotes Sustainable Development– Addresses Area Wide Redevelopment– Addresses Underserved Markets of
Commerce
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– ???
Brownfield MBT
Brownfield Redevelopment Challenges
• What Challenges Remain?
• What Else Can We Do to Stimulate Brownfield Reinvestment?
National Brownfield Conference
May 5-7, Cobo Center, Detroit
www.brownfields2008.org
Brownfield Training