Slideshow Transcript

1. Slide 1: Brownfield Redevelopment Discussion Peter Anastor Michigan Economic Development Corporation www.themedc.org www.michiganadvantage.org
2. Slide 2: 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.
3. Slide 3: Brownfield MBT 2007 Review • Large Credits – 11 projects, $1.3 billion investment • Small Credits – 27 projects, $156 million investment • Mini Credits – 12 projects, $15 million investment
4. Slide 4: Brownfield MBT • Brownfield Redevelopment Tax Credits included in new Michigan Business Tax • Section 437 of Michigan Business Tax • PA 36 of 2007, Senate Bill 94
5. Slide 5: Brownfield MBT PROPOSED CHANGES • 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
6. Slide 6: 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
7. Slide 7: 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
8. Slide 8: Brownfield MBT Original 10% New 12.5% • $50,000 investment • $50,000 investment – $20,000 exterior – $20,000 exterior – $10,000 interior – $10,000 interior – $10,000 machinery – $10,000 machinery – $10,000 soft costs – $10,000 soft costs • $50,000 Eligible Inv. (not eligible) • Total credit = $5,000 • $40,000 Eligible Inv. • Total credit = $5,000
9. Slide 9: Brownfield MBT 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
10. Slide 10: Brownfield MBT Urban Development Area Projects – Increases Density – Promotes Mixed-Use Development – Promotes Sustainable Development – Addresses Area Wide Redevelopment – Addresses Underserved Markets of Commerce
11. Slide 11: 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 – ???
12. Slide 12: Brownfield Redevelopment Challenges • What Challenges Remain? • What Else Can We Do to Stimulate Brownfield Reinvestment?
13. Slide 13: Brownfield Training National Brownfield Conference May 5-7, Cobo Center, Detroit www.brownfields2008.org
14. Slide 14: Contact Peter Anastor 517-373-9014 anastorp1@michigan.org Joe Martin 517-241-8378 martinj11@michigan.org