Commercial property owners in Detroit may now be able to take advantage of the benefits of Michigan’s Commercial Rehabilitation Act for at least another five years. Last month, Governor Snyder signed Senate Bill No. 556 into law, extending Michigan’s Commercial Rehabilitation Act (the “Act”) until December 31, 2020.
The Act encourages the rehabilitation of commercial property by abating the property taxes generated from new investment for a period up to 10 years. The savings under this act can be substantial.
For the purposes of the Act, commercial property includes a building or group of contiguous buildings of commercial property that is 15 years or older, of which the primary purpose is the operation of a commercial business enterprise or multifamily residential use. The Act only applies to areas that have been classified as “Commercial Rehabilitation Districts.”
For more information on how the Act works and how you can apply for a Commercial Rehabilitation Exemption Certificate, please visit the link below:
https://www.michigan.gov/documents/taxes/Comm_Rehab_FAQ_276635_7.pdf
