Michigan Renaissance Zones

Program Purpose and Description:

Renaissance Zones work by granting virtually tax-free status to any business or resident presently in a zone or moving into a zone. The zones are designed to provide selected communities with the most powerful market-based incentive, virtually no state or local taxes, to spur new jobs and investment.

By law, Renaissance Zones waive the following local and state taxes which represent nearly all state and local taxation on a Michigan business:

• Michigan Single Business Tax
  
• Michigan’s State Education Tax
  
• Local Personal Property Tax
  
• Local Real Property Tax

Additionally, employees that also reside in the Renaissance
Zone waive the following taxes:

• Michigan Personal Income Tax
  
• Local Income Tax

A business would pay unemployment insurance, social security taxes, workers’ compensation, sewer and water fees, 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. Michigan does not allow local sales taxes.

Eligibility:

All businesses locating in the Renaissance Zone are eligible for benefits.

View Michigan Renaissance Zones PA 376 of 1996