1. Brownfield Redevelopment Michigan Business Tax Credit Update Michigan Economic Development Corporation www.themedc.org www.michiganadvantage.org www.themedc.orgwww.michiganadvantage.org

2. Brownfield MBT 2007 Review Large Credits –11 projects, $1.3 billion investment Small Credits –27 projects, $156 million investment Mini Credits –12 projects, $15 million investment

3. Brownfield MBT Brownfield Redevelopment Tax Credits included in new Michigan Business Tax Section 437 of Michigan Business Tax PA 36 of 2007, Senate Bill 94

4. Brownfield MBT PROPOSED CHANGES These changes are not signed into law. Included in HB 5511, which has passed the House. Currently in Senate Economic Development and Regulatory Reform Committee

5. Brownfield MBT Refundable Brownfield Tax Credit –Credits that exceed a qualified taxpayers liability would be refunded at 75% of the amount that exceeds the liability

6. Brownfield MBT Increase Tax Credit Percentage –Increase Tax Credit to 12.5% of the Eligible Investment Increase Program Efficiency –Limit eligible investment to project hard costs

7. Brownfield MBT Original 10% $50,000 investment –$20,000 exterior –$10,000 interior –$10,000 machinery –$10,000 soft costs $50,000 Eligible Inv. Total credit = $5,000 New 12.5% $50,000 investment –$20,000 exterior –$10,000 interior –$10,000 machinery –$10,000 soft costs (not eligible) $40,000 Eligible Inv. Total credit = $5,000

8. Brownfield MBT Urban Redevelopment –Up to 15% Tax Credit for Urban Development Area Projects –Urban Development Area Projects include Downtowns or traditional historic commerce centers of Qualified Local Units of Government

9. Brownfield MBT Urban Development Area Projects –Increases Density –Promotes Mixed-Use Development –Promotes Sustainable Development –Addresses Area Wide Redevelopment –Addresses Underserved Markets of Commerce

10. Brownfield MBT Additional Changes –Increases Number of Large Credits to 20 –Combines “Small” and “Mini” Allocation into one $40 million allocation –Allows for Assignments of Tax Credits for Projects Approved under MBT – ???

11. Brownfield Training National Brownfield Conference May 5-7, Cobo Center, Detroit www.brownfields2008.org

12. Contact: Peter Anastor 517-373-9014 anastorp1@michigan.org Jared Belka 517-241-4801 belkaj@michigan.org Joe Martin 517-241-8378 martinj11@michigan.org anastorp1@michigan.org belkaj@michigan.org