Bill to Extend Brownfield Tax Credit Passed by the House.

7 May 2010

Michigan Central Depot

To promote the redevelopment of brownfield sites, the State of Michigan provides Michigan Business Tax (“MBT”) credits, on a case-by-case basis, for projects that redevelop contaminated, blighted or functionally obsolete properties.  Credits are available for up to 12.5% of eligible hard costs, or up to 20% in certain urban areas.

The 20% MBT credit is currently set to expire on December 31, 2010; however, that could soon change.  Last week, on a 99-6 vote, the House passed HB 6044 which would extend the sunset on the 20% credit to the end of 2014.

Based upon the one-sided House vote, the legislation will hopefully be taken up quickly by the Senate.  This is a good move since the brownfield credit is a valuable tool in attracting jobs and private investment in Michigan, particularly in urban centers.

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