Macomb County Opportunity Zones
Created as part of the federal Tax Cuts and Jobs Act of 2017, an Opportunity Zone is a place where long-term investment provides progressive tax benefits for individuals who convert unrealized capital gains into certified Opportunity Funds. As required by Congress, Opportunity Zones were identified by states based on census tract information and then certified by the Secretary of the U.S. Treasury.
Macomb County is home to 17 Opportunity Zones in six communities: Clinton Township, Eastpointe, Mount Clemens, Roseville, Sterling Heights and Warren.
To explore them, as well as information about recent investments, available properties and existing infrastructure, visit Macomb County’s GIS mapping tool. Also download a copy of the Opportunity Zone prospectus booklet.
Macomb County is ready to assist managers of Opportunity Funds and connect them with Opportunity Zone properties. Our professional team of business consultants provide free and confidential services. We can help to determine if other tools – such as New Market Credits, Low-Income Tax Credits, or Commercial and Industrial Tax Exemption Certificates – can help with financing.
To learn more about our services, contact Curt Chowanic at Curt.Chowanic@macombgov.org or call 01 586-469-5285.
For more information about Opportunity Zones and Opportunity Funds, visit: https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions.
Michigan Business Development Program
The Michigan Business Development Program is an incentive based 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. Any business seeking to qualify for assistance from the Michigan Business Development Program must create a minimum of 50 new jobs, unless it qualifies as a high-technology activity, in which the business only needs to create a minimum of 25 new jobs.
This program is performance based, and the participating company in conjunction with the MSF will set benchmarks for the company to meet as the investment project progresses. All projects are subject to an application and a due diligence process conducted by the MEDC. Support from the local municipality is also required for all projects. The Michigan Business Development Program is an advantageous program for Michigan companies because it incentivizes major expansion or relocation projects that spur job creation, by offer financial assistance with long-term and flexible terms on loans and grants. For more information, contact our office at 586-469-5285 or visit www.michiganbusiness.org
Industrial Facilities Tax Exemption
Public Act 198 of 1974 allows for the abatement of industrial property taxes in order to encourage eligible businesses to make new investments in Michigan. These abatements encourage Michigan manufacturers to build new plants, renovate aging plants, and/or expand existing plants. Industrial plants eligible for abatement are those that primarily manufacture or process goods by physical or chemical change. Related facilities for Michigan manufacturers are also included, such as office, warehousing, and research and development. New equipment and machinery is no longer available for abatement with the elimination of the personal property tax. This incentive is advantageous for companies because it significantly reduces the property tax, putting more money back on a company’s bottom line.
The tax abatements are approved and granted by the legislative body of the city, village, or township that the company’s property is located, however before approval, an Industrial Development District must be established through the municipality. The length of the abatement, up to twelve years maximum is also determined through the local unit of government. The State Tax Commission grants final approval and issues the abatement certificate. For more information, contact our office at 586-469-5285 or call the MEDC Customer Contact Center at 517-373-9808.
Public Act 255 of 1978 encourages the replacement, restoration and new construction of commercial property by abating the property taxes generated from new investment for a period of up to twelve years. As defined, commercial property for which the primary use is commercial business enterprise is eligible for land and/or building improvements to make the property more economically efficient. Eligible businesses include office, retail, engineering and research and development, among others. The Commercial Redevelopment Act distinguished between ‘replacement’ facilities and ‘restored’ facilities. Replacement facilities are commercial properties and buildings that are acquired, constructed, or altered for the purpose of substituting for an obsolete commercial property. In order to receive the abatement for this type of building, the property must be zoned mixed-use, or be located in an established downtown revitalization district. Restored facilities are eligible, obsolete buildings and/or properties that have been altered or change to improve economic efficiency by improving floor loads, expanding or minimizing ceiling heights, replacement heating, ventilation, and lighting equipment as well as improving the structural foundation.
Before an enterprise is granted the Commercial Redevelopment Exemption Certificate, the city, village or township must establish a Commercial Redevelopment District. The exemption certificate must then be approved by the municipality’s legislative body. For more information, visit www.michiganbusiness.org
Commercial Rehabilitation Act
Public Act 210 of 2015 encourages the rehabilitation of commercial property by abating the property taxes generated from new investment for a period of up to ten years. In order to be eligible, commercial buildings or group of contiguous buildings of commercial buildings must be 15 years old or greater, and primary use must commercial enterprise or multifamily residential use. This incentive can be utilized by a wide variety of enterprises, ranging from office, engineering, research and development to supermarkets and retail. Property that is not eligible is land used from professional sports stadiums or casinos.
The Commercial Rehabilitation Exemption Certificates are approved and granted through the municipality’s legislative body. All cities, villages, and townships are eligible, but they must establish a Commercial Rehabilitation District in order to grant the exemption certificate. Rehabilitation is defined as changes to qualified facilities that are required to restore or modify the property to an economically efficient condition. The following improvements are included: improvement of floor loads, correction of deficient or excessive height, new or improved heating, ventilation, and lighting, and improved structural support. For more information, visit www.michiganbusiness.org
Michigan Redevelopment Ready Communities
The Redevelopment Ready Communities Program is a state-wide certification program that supports communities to become development ready and competitive in today’s economy. This program encourages communities to adopt innovative redevelopment strategies and efficient processes which build confidence among businesses and developers. Through the program, the Michigan Economic Development Corporation (MEDC) provides the community with a team of public and private sector experts to evaluate and asses the community, as well as expertise and consultation in areas such as community plans and public outreach, zoning regulations, and recruitment and education.
Through the Redevelopment Ready Communities best practices, the communities can strategically change the way they operate, making them more attractive for investments by creating places where talent wants to live, work, and visit. To learn more about the Redevelopment Ready Communities program, visit www.michiganbusiness.org.
Michigan New Jobs Training Program
Macomb Community College offers the Michigan New Jobs Training Program (MNJTP) for employers looking to hire new employees. If a business is locating to or expanding an existing building within the county, Macomb Community College can provide flexible funding to cover the cost of training the new employee(s) by diverting the state withholding taxes back to the company. Businesses can gain a competitive advantage through virtually cost free training. This program defines new jobs as those which are created through a business expansion effort, that have not existed at any point in the company’s history. These jobs must pay at least 175% of the minimum wage to be eligible for the program. They must also be new, direct hires. For more information, call 586-498-4100
Michigan Works! On-The-Job Training Program
Businesses that are looking fill job openings can take advantage of an incentivized training program through the Macomb/St. Clair Michigan Works office called the On-The-Job Training program. In exchange for training an employee who is considered economically disadvantaged or that has a skills gap, a business can be reimbursed 50% of the new employee’s hourly wage for a maximum of 480 hours. The participating company must meet several requirements for the program, including a starting pay of at least $12.00 per hour, the employee must also be a direct hire and working a full-time position. For more information, visit http://www.macomb-stclairworks.org.
DTE Energy’s Energy Efficiency Program for Business
Businesses of all sizes can lower their monthly utility costs by implementing a few simple energy efficiency measures. DTE’s Energy Efficiency Program offers comprehensive incentives for both electric and natural gas users designed help businesses increase energy efficiency, impacting their bottom line in a positive way. There are rebate incentives available for the installation of energy efficient equipment, including lighting, controls, HVAC, and refrigeration. Incentives are provided in the event of equipment replacement or building retrofit. For more information, visit www.dteenergy.com/savenow
Michigan Advanced Technician Training Program (MAT²)
The Michigan Advanced Technician Training program is an innovative and industry-defined approach to education. Based on the German dual educational model, this program combines theory, practice and work to train a globally competitive workforce. This nationally accredited program allows students earning an associate’s degree in certain high-tech fields to apprentice at a manufacturing firm as part of the educational experience. The end result is a highly educated technician graduating with work experience needed to enter the workforce.
This program is advantageous to both the student and the company, because it provides an economically feasible education for the student in which employers provide tuition reimbursement, school stipends, and an increasing hourly wage. In effect, the companies participating in this program are essentially growing their own employees, ensuring professional competency. This program is put on by Pure Michigan Talent Connect through local community colleges. For more information, visit www.mitalent.org/mat2.
Michigan State Trade and Export Program
Under the administration of the MEDC’s Export team, the Michigan State Trade and Export Program (MI-STEP) provides financial assistance for small and medium sized export companies to develop or expand export-related activities. This program is designed to spur job creation by empowering Michigan businesses to export their products. Its objectives are to increase export sales by Michigan businesses, increase the number of new-to-export companies, and increase entry into new markets by companies already exporting. Whether your company is new to exporting or has been exporting for years, this program is ideal for reaching new business growth levels.
Eligible companies may qualify for reimbursements of up to $12,000 for tier 3 and $7,000 for tier 2 businesses, to offset 50% of their export activity costs. These types of activities include overseas trade missions, international trade show participation, foreign market sales trip, and foreign market research. In order to qualify for MI-STEP funds, a company must have 500 or fewer employees or otherwise be in accordance with Small Business Administration guidelines, must have two years of domestic sales, and be in good standing with the Michigan Department of Treasury and other regulatory agencies. Interested companies can complete the intake form at www.michiganbusiness.org/export.
Goldman Sachs 10,000 Small Businesses
Goldman Sachs’ 10,000 Small Businesses program provides small business leaders with a practical business education and a supportive network of advisors and peers to enhance their businesses competitiveness. Through this program, you will receive the tools and support needed to develop a customized growth plan that will take your business to the next level. Educational topics include identifying and evaluating business opportunities, management of the business environment, business negotiation, and business leadership.
This program is for the owners and co-owners of small businesses, which have been in operation for at least two years with revenues of more than $100,000 in the most recent fiscal year. The business must have at least two employees, including the owner(s). Participants must attend a class once a month for a year, as well as complete homework assignments outside of class. In order to graduate, participants must develop a tailored plan for business growth. Locally, this program is done through Wayne State University and Macomb Community College, and is free of charge. For more information, visit www.10KSBDetroit.com
Pure Michigan Business Connect-Business 2 Business
The Pure Michigan Business Connect (PMBC) is a multi-billion dollar public/private initiative developed by the MEDC designed to connect buyers with suppliers. Through this business-to-business network, companies are encouraged to explore procurement opportunities with both public and private entities in order to grow their business. Any business, regardless of size, is eligible to participate in PMBC’s series of matchmaking summits throughout the year. Businesses that register with this initiative have access to an online matchmaking portal where they can connect with even more business opportunities. With over 20,000 companies participating in the free PMBC-Business 2 Business program, there are endless opportunities to find new business for your company. To register, visit https://www.michiganbusiness.org/pmbc/
The Food Export’s 2016 Branded Program
The Food Export’s 2016 Branded Program is now open. If you are a food processor and expanding your business internationally, you need to take advantage of the savings. You can be reimbursed up to 50 percent for five years for your marketing activities to get your products sold in a new country. Macomb County companies have utilized this program and now are selling food products in other countries. Those same companies are now utilizing the five year rule to get into additional countries. Since the funding is on a first come, first serve basis, please reach out to us as soon as possible so we can get information out to you. Learn more: https://www.foodexport.org/programs-services/increase-market-share/branded-program/
EPA Brownfield Cleanup Revolving Loan Fund
Using grant funds from the Environmental Protection Agency (EPA), Macomb County administers a brownfields revolving loan fund program for companies looking to clean up a contaminated site in order to expand their business. This revolving loan fund provides financial assistance to any public or private entity who owns a contaminated site and is not responsible for the contamination, clean up the site so it is redevelopment ready. The EPA has granted Macomb County a total of $1,000,000 in revolving loan funds that will be replenished through the repayment of issued loans, supplemental funds from the EPA, as well as annual EPA brownfield grant competitions.
Brownfield revolving loan funds are available to any private company, with loan assistance provided for a minimum amount of $100,000 up to a maximum of available loan funds. Interest rates are set at a minimum of 3% for a term of 5 years. Parties seeking assistance for their project are generally asked to demonstrate the following criteria to the public and MCPED:
The cleanup will be protective of human health and the environment
The applicant has a financial need of assistance
The applicant welcomes community involvement
The proposed cleanup and redevelopment project is technically and financially feasible
The applicant and its partners have the capacity, expertise, and financial means to perform the project, or at least a reasonable strategy for assembling these requisites
The cleanup and/or redevelopment project will result in significant economic, environmental, and social benefits to the community.
For more information, contact Jeff Schroeder of Macomb County Planning and Economic Development at 586-469-5285.
Facade Improvement Programs in Macomb County
Several Macomb County communities have programs in place to assist building owners make needed improvements through a Downtown Development Authority or Tax Increment Finance Authority. These include:
Center Line offers matching grants of up to $10,000 for eligible façade improvements.
Mount Clemens offers matching grants of up to $10,000 for eligible façade improvements.
Richmond’s Project Clean-Up offers up to $2,000 in reimbursement for exterior improvements when at least $3,000 is spent. Established businesses may also qualify for up to $10,000 in matching funds for façade improvements.
Richmond's Downtown Revitalization Program assists in the rehabilitation of vacant buildings. It offers up to $15,000 in matching funds. Up to 30 percent of the grant may be applied toward interior upgrades such as HVAC, plumbing or electrical work.
With a mission to improve and promote Michigan’s most famous corridor, the 8 Mile Boulevard Association offers facade improvement grants to eligible buildings in St. Clair Shores, Eastpointe and Warren.