Development Information

Aerotropolis Development Area Tax Incentives & Loans Infrastructure Job Training Regulatory Asssistance

Aerotropolis Development Area - Interactive Map

Tax Incentives & Loans

Industrial Property Tax Abatement (P.A. 198 of 1974): Provides a 50% property tax abatement on real and personal property for industrial activity for up to 12 years. "High-technology activity" also qualifies for the abatement. Qualified companies may also apply for exemption from the State Education Tax (SET). Abatements are approved by the local government and the Michigan Economic Development Corporation (MEDC). For more information, click here.

MEGA Business Tax Credit (P.A. 24 of 1995): Provides up to a 100% credit of up to 20 years against the Michigan Business Tax (MBT) for companies that expand or relocate their business in Michigan. Eligible companies include those engaged in manufacturing, research & development, wholesale trade & financial operations, and high-tech activity including computing, biotechnology, advanced vehicle technology, homeland security, alternative energy, and other technology operations. For more information on MEGA credits, click here.

Brownfield Redevelopment Tax Credits: Certain projects that develop a contaminated, blighted, or functionally obsolete property are eligible for a Michigan Business Tax (MBT) credit for up to 12.5% of eligible investments. Approval of tax credits are made by the Michigan Economic Growth Authority (MEGA) Board. Site assessment funds may also be available through Wayne County’s Brownfield Development Authority. For more information on Brownfield Tax Credits, click here.

SBA 504 Loan Program: For small and medium sized businesses where this financing will help companies create or retain jobs, export their product or service, and expand business ownership opportunities. Business whose expansion plans call for the investment and use of real estate or equipment for their businesses may qualify for up to 90% financing. For more information on SBA Loans administered through Wayne County, click here.

Land Bank / Turbo: Wayne County’s Land Bank Corporation TURBO Program (transforming underdeveloped residential and business opportunities) provides meaningful financial incentives to private property owners who develop or rehabilitate unproductive land within the county for a one year tax exemption during the year of construction and a 50% reimbursement of an amount equal to the real property taxes for 5 years. For more information on Wayne County's Land Bank & Turbo Program, click here.

Other Tax Incentives: State law exempts inventory, pollution control equipment, and certain tools, dies, jigs, and fixtures from local property taxes. The state sales tax is not levied on the purchase of machinery and energy used in manufacturing. Also, the State of Michigan offers an Investment Tax Credit against the Michigan Business Tax (MBT) for capital purchases made in the state. The timing and amount of the project’s capital investment affects the Investment Tax Credit amount.

More Michigan Business Tax Information: The Citizens Research Council of Michigan recently pubished an updated Outline of the Michigan Tax System. This is a good resource for those who want to understand recent changes in Michigan tax law. Area Development Online has a good summary of Business Taxes in the State of Michigan. Click here to access the information.

Infrastructure Development

Industrial Development Revenue Bonds (IDRBs): The MEDC and Wayne County’s Economic Development Corporation are able to issue tax-exempt and taxable IDRBs for creditworthy companies that demostrate that the project fulfills a good public purpose. Tax-exempt IDRBs can be issued for capital expenditures in manufacturing plants and equipment for projects up to $10 million per site, with a $40 million corporate limit. Interest paid to bond buyers is exempt from federal, state, and local income taxes the rate can be 70-80 percent of prime. Taxable IDRBs have few federal restrictions and can be used for financing large projects in excess of $10 million. The interest rates are approximately 0.50 percent under conventional long-term rates because state and local income taxes are exempted. Advantages are found in longer terms (20 years or more) alternative source of capital compared to commercial banking, and better interest rates. For more information on Industrial Development Revenue Bonds, click here.

Tax Increment Financing (TIF): Tax Increment Financing involves the recapture of local property taxes generated by new business investments can be used to pay for public infrastructure improvements or to fund demolition, infrastructure improvements, site preparation, and lead and asbestos abatement on eligible property for Brownfield Redevelopment projects. Creation and usage of TIF is a local governmental decision, except for brownfield sites where the MEDC approval may also be necessary. TIF authorities along with Local Development Finance and Downtown Development Authorities exist in the cities of Romulus, Van Buren Twp, Huron Twp, Taylor, and Belleville. For more information on Tax Increment Financing, click here.

Michigan SmartZones: SmartZones are distinct geographic locations where technology-based firms, entrepreneurs, and researchers locate in close close proximity to one another to create a unique cluster of economic activity. The Pinnacle SmartZone is one such zone located just south of Detroit Metropolitan Airport. The Pinnacle SmartZone is located in a TIF district where property tax increments are reinvested into the Zone for infrastructure development. For more information on SmartZones, click here.

Transportation Economic Development Fund (TEDF): The Michigan Department of Transportation (MDOT) manages several types of Economic Development Programs under the Transportation Economic Development Fund. Category A of this fund targets a variety of industries, including manufacturing activities, providing funding support for road improvements. These funds vary according to a series of criteria established by the State, including level of investment and jobs created. For more information on the Transportation Economic Development Fund, click here

Other Infrastructure Assistance: If public infrastructure improvements (roads, water, or sewer lines) are needed to assist the company to invest in Michigan, the State of Michigan and Wayne County are able to provide funds through federal and state programs on a limited and qualified basis.

Job Training

Workforce Development: Michigan offers a coordinated job training system using federal, state, and local resources to provide a highly trained and productive workforce. There are funding sources available to help pay for customized training and retraining programs for companies hiring new workers and for upgrading the skills of existing workers. Recruitment, screening, and testing services are available for existing, as well as new employers expanding in Michigan through state and local programs. For more information, visit the Michigan Works! website and the Michigan Talent Bank website.

Regulatory Assistance

Site Location Assistance: The MEDC and Wayne County maintain an active listing of sites that allows confidential, customized site information. The system allows us to provide immediate information on available buildings, certified industrial parks throughout the state. For more information, visit the MEDC website or the Wayne County Economic Development website.

Regulatory Assistance & Permit Coordination: The Aerotropolis Task Force is currently exploring ways to expedite and streamline the regulatory process across all jurisdictions in the Aerotropolis. In the meantime, the below links should provide you with the information you need to navigate the regulatory process and get your business up and going.

Transportation Links

Launched by the Detroit Regional Chamber in 2008, TranslinkeD is your source for regional trade and transportation information, news, and events. TranslinkeD serves as a unified forum for addressing transportation policy in Metro Detroit. For more information, please visit the TranslinkeD website.

The Southeast Michigan Council of Governments is the Detroit Region's council of governments. SEMCOG supports local government planning on regional issues in the areas of transportation, environment, economic development, and education. For more information, visit the SEMCOG website.

The Michigan Department of Transportation is the State's transportation authority. MDOT aims to provide Michigan with a safe, efficient, and seamless transportation system that grows Michigan's economy and improves quality of life in every Michigan Community. For more info, visit the MDOT website.