Carson City Renaissance Zone
What is a Tax-Free Renaissance Zone?
Michigan's Tax-Free Renaissance Zones are state-designated zones that are virtually tax-free for any business or resident presently in or relocating to a zone.
The Zones are designed to provide selected communities with the most powerful market-based incentive - NO TAXES - to spur new jobs and investment.
Each Renaissance Zone can be comprised of up to six smaller zones (sub zones) that are located throughout the community to provide businesses more options on their location choice.
Just how "tax-free" are Tax-Free Renaissance Zones?Locate in any of the Renaissance Zones and waive the following local and state taxes:
- Michigan Single Business Tax
- Michigan Personal Income Tax
- Michigan State Education Tax
- Local Personal Property Tax
- Local Real Property Tax
- Local Real Income Tax
- Utility Users Tax
These taxes represent nearly all state and local taxation on a Michigan business.
Are there any other taxes that a business would pay in a Renaissance Zone?
A business would pay unemployment insurance, social security taxes, workers' compensation, and sewer and water fees that are either federal taxes or fees for service.
Businesses would also pay property taxes, which result from local bonded indebtedness or special assessments so as not to jeopardize the community's current bonds.
Businesses would also pay Michigan's six percent sales tax. The state does not allow local sales taxes.
When does the tax-free status of a zone begin?
The Tax-Free Renaissance Zone begins Jan. 1, 2001. A business location in a 15-year zone receives the benefit for as long as the zone designation lasts.
If a business moves into a 15-year zone in the year 2004, it has 12 years of tax-free status remaining.
What's the Catch?
There's no catch. We are up front about which taxes are waived, which taxes are not waived, where your business needs to be located, and how long the benefit lasts.
How can I get more information?
You can request for more information via our online Information Request Form. We will be happy to supply you with everything you need to know about locating your business here.
The Michigan Economic Growth Authority strives to promote high quality economic growth and job creation in Michigan that would not occur without this program.
It enables eligible companies to receive up to a 20-year credit for as much as 100 percent of the incremental SBT liability attributable to an expansion/new location project. The program also allows those companies to credit personal income tax withholding for the net new jobs created.
Who can Apply?
Businesses engaged in manufacturing, research and development, wholesale and trade or office operations that are financially sound and have financially sound proposed plans are eligible for a tax credit.
Tax Abatements (PA 198/ PA 328)
Plant rehabilitation and Industrial Development Act (P.A. 198)
Public Act 198 provides tax exemptions for industrial development projects – including new construction or rehabilitation projects, and the purchase of new machinery/equipment. There are two different kinds of abatement available under Act 198. One offers a tax break of slightly less than 50 percent, the other offers a 100 percent abatement on all improvements. The latter break is available only for renovation, replacement or rehabilitation projects. The maximum exemption period is 12 years for real property and for personal property.
Personal Property tax Relief in Distressed Communities (P.A. 328) The new law allows "distressed communities" to abate all new personal property taxes in certain geographic areas to spur economic development. The Public Act 328 exemption has no time limit. It is a 100% exemption, unlike most normal tax abatements under P.A. 198.
Industrial Revenue Bond Financing for Nonprofit 501(c)3 Corporations.
This tax-exempted bond available from the Michigan Strategic Fund allows applicants to realize an interest savings on borrowed funds for financing capital projects under federal law.
Tax-exempt Bonds for Manufacturers
Tax-exempt bonds are available from the Michigan Strategic Fund to promote economic activity by Michigan companies. These bonds of up to $10 million may be supplied to cover the costs of acquisition or rehabilitation of fixed assets. Projects no longer eligible for tax-exempt bonds may be financed through fixed interest rate taxable bonds.
Taxable Bonds
Taxable bonds are a separate alternative for unconventional low interest financing. Their primary advantage is that the bonds can be used to finance working capital and other non-capital costs, and are not subject to the timing rules and other IRS restrictions applicable to 501(c)(3) bonds and manufacturer tax exempt bonds.
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