The Overview

If you own or want to redevelop a commercial property in Michigan, a state tax break program you may have relied on just got a longer lease on life. Michigan's SB 722, which amends the Commercial Rehabilitation Act, became law when Gov. Gretchen Whitmer (D) signed it July 21. The law took immediate effect July 22. ​

What the Law Does

The law keeps the Commercial Rehabilitation Act alive by pushing its expiration date to Dec. 31, 2035, after which no new exemption certificates may be issued, though certificates already in effect on that date continue until they expire. Under the program, a qualified facility with a valid certificate is exempt from ad valorem property taxes for a term of at least one year and no more than 12 years, excluding the land itself and certain personal property.

Qualified facilities include commercial buildings 15 years old or older, properties previously used for commercial or industrial purposes, and qualified retail food establishments in underserved areas. Professional sports stadiums and casino-related properties are excluded. The State Tax Commission must approve or disapprove a local government's application within 60 days of receiving it, and certificates generally take effect Dec. 31 of the year the commission receives the application. Cities, villages, and townships that grant an exemption must report their status to the commission by June 15 each year, including the property's current value and an estimate of jobs retained or created.

Legislative Status

Sen. Jeremy Moss (D-MI-7) sponsored the bill. The Senate passed it 22–13 on Dec. 9, 2025; the House passed it 97–11 on July 3, 2026, a wider margin.

Whitmer's office said SB 722 and SB 721 extend the sunsets on the Commercial Rehabilitation and Commercial Redevelopment acts "to allow both important programs to continue to operate." Michigan.gov press release Gov. Gretchen Whitmer signed three bills aimed at redeveloping blighted Michigan properties, including SB 722, which extends the sunset on the Commercial Rehabilitation Act, WNEM-TV5 reported.

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