Act 198 and Act 328 Property Tax Abatement
Industrial Development and Expansion Incentives
Act 198 of the Michigan Public Acts of 1974, as amended, established a means of providing significant economic stimulus in the form of property tax abatements to industry for job creation, job retention and private sector investment in buildings and equipment. Industrial Facilities Tax Exemptions approved by local governmental units and by the State Tax Commission generally provide a 50% exemption from local property taxes on the taxable value of new real and personal properties for the maximum period of twelve (12) years. The Township has approved numerous Act 198 Industrial Facilities Tax Exemption Certificates over the years to provide incentive and stimulus for industrial development and expansion.
Effective December 19, 2014, the Township has put a moratorium on receiving industrial Personal Property applications under Act 198. The Township will not accept applications for Personal Property or applications which have Personal Property in addition to Real Property. The Township will accept 198 applications for Real Property if properly submitted. The moratorium is in place for an indefinite period.
Act 328 of the Michigan Public Acts of 1998, as amended, the New Personal Property Tax Exemption Act, was created to allow distressed communities, specifically identified and authorized by the State, to abate personal property taxes on new investments made by eligible businesses. In addition, through December 31, 2012, eligible businesses also include businesses that may qualify for a tax credit under the Michigan Economic Growth Authority (MEGA) Act 23, of 1995. In contrast to an Act 198 Industrial Facilities Exemption Certificate, an Act 328 Exemption Certificate reduces taxes on personal property (not real property) by 100% for the length of the abatement.
The Township has put a moratorium on receiving Act 328 applications. This moratorium will continue for an indefinite period.
Industrial Facilities Tax Exemption Guidelines
Application for Act 198 Tax Abatement
Personal Property Tax Exemption Guidelines
Application for Act 328 Tax Abatement