Brownfield Tax Increment Financing

The Brownfield Redevelopment Financing Act, Public Act 381 of 1996, allows Brownfield Redevelopment Authorities, such as the Macomb County BRA, to authorize tax increment financing for the implementation of brownfield redevelopment projects. The incremental increases to property tax revenues can be used to finance eligible activities on a site, including baseline environmental assessments, due care activities and additional environmental response activities. Within core communities (in Macomb County: Centerline, Eastpointe, Mount Clemens and Warren) tax increment financing can also be used to fund demolition, public infrastructure, site preparation and lead and asbestos abatement.

To qualify for the Brownfield TIF, a developer must have a BRA-approved brownfield plan recommending that the increment of increase in property tax revenue from the eligible property be captured and used to reimburse her for eligible expenses incurred on the site. No otherwise “eligible” activities may be reimbursed if they occurred before the BRA approved the brownfield plan. Both the local and school taxes may be captured for the TIF. The capture of school taxes requires the additional approval(s) of the Michigan Department of Environmental Quality and/or the Michigan Economic Growth Authority.

In Macomb County’s non-Core Communities, properties eligible for the Brownfield TIF are commercial, industrial or residential; and are contaminated, and identified as such, in a plan approved by a BRA. In the county’s four Core Communities, eligible properties are commercial, industrial or residential; and are contaminated, blighted or functionally obsolete, and identified as such, in a plan approved by a BRA. MCPED, as staff to the Macomb County BRA, is eager to work with you to explore your opportunities to benefit from brownfield site redevelopment. Your call or e-mail to us is the first step in quickly determining your eligibility to take advantage of this incentive.