Governor Jennifer Granholm recently signed a package of
bills that will let more communities apply for development related tax credits.
Before the bills were signed, only 100 “core communities”
in the state could take advantage of brownfield tax credits, which allow
communities to give developers tax breaks and financial incentives for cleaning
up or demolishing industrial properties for new construction.
“You could easily see hundreds of thousands in
reimbursement for a project,” says attorney Richard Barr of Honigman, Miller, Schwartz, and Cohn, LLP.
Without these credits developers may take a pass on
certain projects, he says.
“To say there could be dozens of additional projects in
the next few years that could benefit from hundreds of thousands or millions in
incentives is not an overstatement,” Barr says.
In 2007, the state approved approximately $80 million in
tax credits for 50 new brownfield redevelopment projects. Brownfield credits
were part of an incentive package developer Pat Gillespie used to build the
Stadium District condos.
Source: Ari Adler, John Bailey & Associates
Ivy Hughes, development news editor, can be reached here.
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