The Overview

Local governments in Michigan can grant property tax exemptions of up to 12 years on commercial facilities in redevelopment districts, and Gov. Gretchen Whitmer said the changes would help transform abandoned or blighted sites. Michigan's commercial redevelopment bill, SB 721, became law when Gov. Gretchen Whitmer (D) signed it July 21. ​

BridgeDetroit reported in 2023 that four Detroit properties received $5.8 million in state brownfield funding to support redevelopment of contaminated sites, and Planet Detroit reported in December 2025 that cleanup funding can help turn polluted properties into housing, parks and other uses. The law took immediate effect July 22.

What the Law Does

The law amends Michigan's 1978 Commercial Redevelopment Act to let local governments grant property tax exemptions on commercial facilities in redevelopment districts, with certificates lasting at least one year and up to 12 years after a facility is completed. If a local government sets a term shorter than 12 years, any extension review must use written criteria approved when the certificate was first issued and shared with the applicant and the state tax commission. Applicants may also file amended applications to correct errors, which the local legislative body may approve or deny.

The state treasurer may, for up to six years, exclude up to half of the state education tax mills from the specific tax on a new or replacement facility, capped at 45 such exclusions per year. Local governments must report each exemption's status to the state tax commission by June 15 every year. No new exemption may be granted after Dec. 31, 2035, though certificates already in effect on that date continue until they expire. That sunset gives developers and local governments roughly nine years to use the program before it closes to new applicants.

Legislative Status

Sen. Jeremy Moss (D) sponsored the bill, introducing it Dec. 2, 2025. The Senate passed it Dec. 9, 2025, 22 to 13. The House passed the bill 96 to 12 on July 3, 2026. The House passed the bill by 84 votes, 96 to 12, while the Senate margin was nine votes, 22 to 13.

Whitmer said the measures would help "transform abandoned or blighted sites," creating revitalized spaces that would spur additional investments, according to a Michigan.gov announcement.

---

AllCiv makes it easy to stay politically informed and involved.

---

Spot something wrong? Report an issue with this article