[CPEO-BIF] Michigan's tax credit debate

[Lenny Siegel <lsiegel@cpeo.org>]

Some worry Snyder budget plan could kill urban development in Michigan

Chris Knape
Grand Rapids Press (MI)
February 17, 2011

GRAND RAPIDS - Gov. Rick Snyder's proposed overhaul of the state budget 
and tax system puts a program that has been credited with revitalizing 
downtown Grand Rapids and other urban areas on the chopping block.

The state's brownfield and historic tax credit programs have been used 
for Grand Rapids projects ranging from the Medical Mile and the JW 
Marriott in downtown to a recently opened brewery East Hills neighborhood.

...

Developers generally resell the tax credits to other Michigan companies 
with tax liabilities in order to help secure bank financing to get 
projects off the ground. The value of credits awarded is based on a 
percentage (typically 12.5 percent) of the total investment in a property.

Developers say the credits help close the gap between the higher cost of 
reusing contaminated, obsolete or historic buildings and building new on 
an undeveloped greenfield site.

...

For the entire article, see
http://www.mlive.com/business/west-michigan/index.ssf/2011/02/some_worry_snyder_budget_plan.html

--


Lenny Siegel
Executive Director, Center for Public Environmental Oversight
a project of the Pacific Studies Center
278-A Hope St., Mountain View, CA 94041
Voice: 650/961-8918 or 650/969-1545
Fax: 650/961-8918
<lsiegel@cpeo.org>
http://www.cpeo.org



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