The House New Economy Committee passed SB 1487, which will allow communities to extend brownfield credits if the original project falls through. Currently, there are problems with the 30 year timeline for tax increment financing (TIF) capture and disbursements for Brownfield plans. Come communities are facing situations where a Brownfield plan was approved for a project, but that project couldn't get the appropriate financing and no capture or disbursement took place. When another project becomes feasible, the 30 year clock has already started and the new project will lose the 2 or 3 years since the first project was approved. The legislation will allow for new projects to have the whole 30 years available, as long as the state again approves the project. I testified in support of this legislaiton along with a representative of the City of Bay City, and the bill passed committee unanimously. It is expected to pass the House and go to the Governor during the final week of legislative session.
Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email at aschor@mml.org.
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