GRAND RAPIDS, Mich. (WOOD) — The Michigan Strategic Fund board this week approved new guidelines for the Transformational Brownfield Plan program after lawmakers authorized a major expansion of the tax incentive program.
The TBP program is an “enhancement” of Brownfield Tax Increment Financing, a funding tool that supports the development of contaminated or otherwise eligible properties by allowing developers to capture a portion of taxes from the property. TBPs are specifically for large-scale, “transformational” projects, with the goal of making these projects financially feasible.
So far, 14 TBPs have been approved, according to a Michigan Economic Development Corporation memo. That includes the Shaw-Walker factory project in Muskegon and the Factory Yards development in Grand Rapids.
Construction underway on ‘transformative’ Factory Yards project in Grand Rapids
Previously, the program’s lifetime cap for post-construction income, withholding and sales/use tax capture was set at $1.6 billion. But with the previously approved projects, that cap had nearly been reached, limiting the program’s ability to support future development…