Tax Incentives

The City offers tax incentives through various public acts. These incentives are applied to maximize return on investment for the developer and the community. The City’s objectives in providing these incentives are to increase employment opportunities for our residents, diversify and stabilize the tax base, reduce functional obsolescence of existing properties, encourage expansion of our business base, provide for improved housing and commercial amenities, encourage attractive viable building sites, and enhance our ability to attract and retain businesses.

Tax Incentive Policy and Guidelines

Payment in Lieu of Taxes Policy and Guidelines

Exemptions from ad valorem property taxes for certain low-income housing projects. Fees are based on goals set by the City Commission.

Industrial Facilities Tax

Incentive to expand industrial businesses. Real and personal property investments will receive a 50% abatement on new taxes generated for up to 12 years.

Commercial Rehabilitation

Incentive to rehabilitate commercial buildings. Property taxes will be frozen at the pre-rehabilitated rate for up to ten years. Available for commercial buildings more than 15 years old.

Obsolete Property Rehabilitation

Incentive to rehabilitate obsolete buildings. Property taxes will be frozen at the pre-rehabilitated rate for up to 12 years. Available for commercial properties that are contaminated, blighted, or functionally obsolete.

Neighborhood Enterprise Zone (NEZ)

The Neighborhood Enterprise Zone Act provides for the development and rehabilitation of residential housing located within eligible distressed communities. New and rehabilitated facilities applications are filed, reviewed, and approved by the City of Muskegon, but are also subject to review at the State level. A $50 application fee applies to all NEZ Certificate applications processed by the City, as they require City Commission review and approval.

Revolving Loan Fund

The City of Muskegon’s Revolving Loan Fund is intended to promote economic development through the provision of capital for new and expanding locally-sited businesses. It is intended to supplement conventional financing sources, but not replace them completely. Seventy percent of the project must come from private financing while the Revolving Loan Fund can cover the remaining thirty percent (up to $30,000).

Brownfield Tax Credits

Brownfield tax credits serve as a financial incentive for economic development projects within the City of Muskegon where environmental contamination, blight, or functional obsolescence create an impediment to redevelopment of the property. Inclusion of a project in the Muskegon Brownfield Plan can result in certain eligible activities being financed through tax increment financing.

Site Assessment Grant

Funds may be available for owners of a property planning to undertake an expansion and/or new construction or potential new owners of a site being planned for development. The funds are to assist with a Phase I, Phase II, BEA, and Due Care Plan for eligible properties through an EPA (Environmental Protection Agency) Site Assessment Grant. The City of Muskegon administers the grant and has retained the environmental consultants responsible for the investigation and reporting.

Small Retail Assistance

The City of Muskegon and its Economic Development, Planning and Community, and Neighborhood Services departments seek to bolster struggling City retail establishments due to COVID-19 and at the same time encourage new retailers to join the growing mix of small businesses in the City.

View Small Retailer Assistance Program Overview

View Small Retailer Assistance Program Guidelines

For more information on the Small Retailer Assistance Program or to apply, contact Peter Wills by phone at (231) 724-4144 or via email at peter.wills@shorelinecity.com.