Tax Abatement Programs
PA 198 property tax abatements were created by the State of Michigan to provide a stimulus in the form of significant tax incentives to industries that renovate and expand aging plants, build new plants and promote establishment of research and development laboratories.
PA 198 OF 1974 Property Tax Abatement
Property tax abatement is an incentive provided primarily to build new plants in Michigan or renovate and expand aging assembly and manufacturing, and research plants. The incentive comes in the form of abated property taxes. The value of the project added will produce 50% of the taxes for a set period of time and then resume to the full tax value at the end of the abatement period. Read the City of Novi's Tax Abatement Policy by clicking on the link below.
Property Tax Abatement Policy
Public Act 210 of 2005 Commercial Rehabilitation Act Tax Abatement Policy
PA210 encourages the rehabilitation of commercial property by abating the property taxes generated from the new investment for a specific period. This was amended in 2011 to provide that the construction of a hotel with meeting/convention space attached to an existing convention and trade center of a certain size and location can qualify for a tax abatement of 100% of the value of the hotel improvements (but not the land on which it is located) for a period of up to 10 years. The City of Novi adopted policies for the Suburban Collection Showplace as well as two other potential development areas in the city.
Public Act 210 of 2005
PA210 10 Mile/Meadowbrook District
PA210 Former Novi Expo Center District
Brownfields are real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. The City of Novi has participated in Brownfield Development, if you have a new commercial project that you would like considered, please contact Victor Cardenas.
Michigan Business Development Program
The Michigan Business Development Program is a new incentive program available to eligible businesses that create qualified new jobs and/or make qualified new investment in Michigan. The Michigan Business Development Program is a new incentive program available from the Michigan Strategic Fund (MSF), in cooperation with the Michigan Economic Development Corporation (MEDC). The program is designed to provide grants, loans or other economic assistance to businesses for highly competitive projects in Michigan that create jobs and/or provide investment.
The following companies have benefited from tax incentives for business attraction/retention purposes:
Caparo (closed Novi operations in 2013)
Detroit Heavy Truck Engineering
Ecco Tool Company
Harman (formerly Harman Becker Automotive)
Howa USA Holdings
Metalsa Structural Products
SAIC (formerly Patrick Energy Services)
Suburban Collection Showplace
Toyota Boshoku America