Local Economic Development Tools and Application Materials
The City of Southfield is truly “Open for Business” as attested by our favorable business climate, skilled workforce and redevelopment ready, business-friendly environment. The City of Southfield is a “Core Community” as designated by the State of Michigan. Corporations and development projects will be eligible for a wide range of incentives from the State, County and other local agencies. Contact Southfield Business & Economic Development Director at rfreeman@cityofsouthfield.com to explore taking advantage of incentives.
Locally Approved Brownfield Redevelopment:
Southfield Brownfield Redevelopment Authority offers brownfield redevelopment tax increment financing and revolving grant/loan opportunities. The City of Southfield's Brownfield Redevelopment Authority provides incentives to businesses that redevelop contaminated, blighted, and functionally obsolete sites to facilitate the reuse of the properties. Incentives can include paying for cleanup-related costs such as demolition, site preparation, public infrastructure, and lead and asbestos abatement, as well as environmental remediation.
State Approved:
The Michigan Economic Development Corporation offers several incentives that are instigated locally, full approval is granted at the State level.
PA 210 Commercial Rehabilitation Act encourages the rehabilitation of commercial property by abating the property taxes generated from new investment for a period up to 10 years. Properties must meet eligibility requirements and be located in a Commercial Rehabilitation District as defined by the City of Southfield and approved by Oakland County. The State Tax Commission is responsible for final approval and issuance of Commercial Rehabilitation certificates.
PA 198 Industrial Facilities Exemption property tax abatements were created by the State of Michigan to provide a stimulus in the form of significant tax incentives to industries that renovate and expand aging plants, build new plants, and promote establishment of research and development laboratories.
Property tax abatement is an incentive provided primarily to build new plants in Michigan or renovate and expand aging assembly, manufacturing, and research plants. The incentive comes in the form of abated property taxes. The value of the project added will produce 50% of the taxes for a set period of time and then resume to the full tax value at the end of the abatement period.
Public Act 328 New Personal Property Exemption allows eligible businesses to abate personal property taxes on new investments in the City of Southfield. Eligible projects include manufacturing, mining, research and development, wholesale trade, and office operations.
In 2014, the legislature finalized revisions to the Michigan Personal Property Tax (PPT) reform. Under this revised package, the small “essential services assessment” (ESA) that manufacturers pay to cover their costs associated with local government police, fire, ambulance, and jail services will now be a flat, statewide rate that is fixed and requires only one form and payment to be submitted to the state.
Information & Application
Michigan Business Development Program is available to eligible businesses that create qualified new jobs and/or make qualified new investment in Michigan. This is a new incentive program available from the Michigan Strategic Fund (MSF) in cooperation with the Michigan Economic Development Corporation (MEDC). The program is designed to provide grants, loans, and other economic assistance to businesses for highly competitive projects in Michigan that create jobs and/or provide investment.
