Incentive: P.A. 198 TAX ABATEMENT - INDUSTRIAL FACILITIES EXEMPTION

Saginaw County’s townships, villages and cities are very familiar with Industrial Facilities Exemption certificates and most have been supportive of this incentive for new and expanded facilities. The P.A. 198 tax abatement program provides a 50% abatement on real property for up to 12 years and up to an additional 2 years for new construction. Instead of the property tax, the firm pays an Industrial Facilities Tax (IFT) that reflects the abatement savings. In order to request a PA 198, an Industrial Development District (IDD) must be established, however the local government may approve both the IDD and the Abatement at the same time.

Eligible Facilities: Industrial plants of businesses who primarily manufacture or process goods or materials by physical change. Related facilities of Michigan manufacturers such as offices, engineering, research and development, warehousing or parts distribution are also eligible for exemption. High technology companies are also eligible. Exemption applies to buildings and building improvements. Land is specifically excluded from the benefits of the act and is fully taxable.