What is it? A Renaissance Zone is an area in need of new jobs and economic growth. These zones levy virtually no state or local taxes, providing major incentives for business potential.

Who's eligible? If a business is located in a Renaissance Zone, it may be eligible for tax benefits. Property owners are responsible for property taxes that pay for local bonded indebtedness, school sinking funds, and special assessments.

How much is available? The following state and local taxes are abated for businesses located in a Renaissance Zone:

PROPERTY TAXES

• Local Real Property Taxes – General property taxes on land and buildings are nearly 100% abated
• Local Personal Property Taxes – These general property taxes are nearly 100% abated for the business’ personal property that is located in the Renaissance Zone.
• 6- mill State Education Tax (SET) the state property tax levy for schools is 100% abated. This amount is included in your local property tax bill.

Local units of government handle the property tax abatement differently. To find out how to claim the abatement for property taxes, contact the local assessors office for the Renaissance Zone.

STATE & LOCAL TAXES

• Single Business Tax – A tax credit is allowed against the Michigan Single Business Tax (SBT) for business activity attributable to the Renaissance Zone.
• Local Income Tax – City corporate income taxes, if applicable in the zone, are 100% abated.

What are the terms for agreement? A business must be located in a Renaissance Zone. Designation of Renaissance Zones can be facilitated by Traverse Bay EDC. For more information, contact Traverse Bay EDC at (231) 995-7105.