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.
- Industrial Facilities Tax Abatement (PA 198 of 1974) (PDF)
- Industrial Facilities Tax Application (PDF)
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.
- Commercial Rehabilitation Certificate (PA 201 of 2005) (PDF)
- Commercial Rehabilitation Application (PDF)
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.
- Obsolete Property Certificate (PA 146 of 2000) (PDF)
- Obsolete Property Certificate Application (PDF)
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.
What is a brownfield? Watch the video below for an explanation.
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.