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HB 5306

Economic development: commercial redevelopment; commercial rehabilitation exemption certificate; extend sunset. Amends sec. 16 of 2005 PA 210 (MCL 207.856).

2025-2026 Regular Session Introduced by Brian BeGole and 1 co-sponsor

Michigan HB 5306 extends the Commercial Rehabilitation Exemption Certificate program's sunset date, continuing property tax abatements for businesses rehabilitating commercial buildings.

referred to second reading
#economicdevelopment:commercialredevelopment
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Bill Summary · HB 5306

Legislative bill overview

HB 5306 extends the sunset date for Michigan's Commercial Rehabilitation Exemption Certificate program, which provides property tax abatements to businesses that rehabilitate commercial properties. The bill amends the 2005 Public Act 210 to keep this economic incentive program in operation beyond its scheduled expiration date.

Why is this important

The Commercial Rehabilitation Exemption Certificate allows businesses to receive temporary property tax relief when investing in renovating existing commercial buildings, making urban redevelopment projects more financially feasible. Without this extension, property owners would lose this incentive tool, potentially reducing motivation for rehabilitating vacant or deteriorating commercial structures in Michigan communities.

Potential points of contention

  • Tax revenue impact: Property tax abatements reduce local government revenue; municipalities and schools may lose funding during the exemption period, with questions about whether economic growth offsets this loss
  • Geographic equity: The program may disproportionately benefit well-capitalized developers or specific regions with more commercial real estate opportunities, raising fairness concerns
  • Program effectiveness: Debate over whether the tax incentive actually drives rehabilitation projects that wouldn't occur otherwise, or primarily subsidizes development that would happen regardless

Compiled from official sources — confirm details with the bill’s official record.

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