Brownfield Tax Increment Financing (TIF) – Act 381 of 1996
Brownfields are defined as properties that are contaminated (facility), blighted, functionally obsolete, or are historic properties. Regardless of their classification, all brownfield properties face economic impediments to reuse and redevelopment.
Through the Brownfield Redevelopment Financing Act, Brownfield Tax Increment Financing (TIF) allows applicable taxing jurisdictions to receive property taxes on the property at the current level and capture the incremental increase in tax revenue resulting from a redevelopment project. The incremental tax capture can be used to reimburse the project’s developer to help offset the costs of environmental and/or non-environmental eligible activities. The reimbursement takes place over time, as the incremental taxes are realized. Under a MSF approved Work Plan or Combined Plan, projects can seek reimbursement from state and local property taxes for eligible non-environmental activities. Projects can also seek reimbursement from state and local property taxes for eligible environmental activities through submission of a Work Plan or Combined Plan to the Michigan Department of Environmental Quality (MDEQ).
A draft Work Plan is submitted for initial evaluation and project scoping to either the Community Assistance Team or Business Development Manager, depending on the type of project. MEDC leadership considers initial support for the project and if supported, a letter of interest is provided. The final Work Plan or Combined Plan are approved at the local level and submitted to MEDC. MEDC staff reviews and completes due diligence. A recommendation is made to the MSF Board or Delegates. Following MSF approval, the local government unit administers the TIF capture and the BRA submits reporting information annually to the MEDC.
Click below for guidance on preparing an Act 381 Work Plan
Looking for guidance in the TIF Process?
We’ve created and identified documentation to serve as a resource for this program. You can find these and more on the Resources page.
For more information, links to contacts are provided below:
For community development projects, contact the Community Assistance Team (CATeam) Specialist.
For business development projects, contact the Business Development Manager.
For projects that include environmental activities, contact the MDEQ Remediation and Redevelopment Division.