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SB 793

Economic development: plant rehabilitation; industrial facility tax; modify. Amends secs. 3, 6, 7 & 9 of 1974 PA 198 (MCL 207.553 et seq.).

2025-2026 Regular Session Introduced by Paul Wojno

SB 793 tightens the IFE process by redefining project start to first building/permit, clarifying notifications, and removing appeals of disapproved IFE certificates.

referred to Committee on Regulatory Reform
#economicdevelopment:plantrehabilitation
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Bill Summary · SB 793

Overview

Senate Bill 793 (2025-2026, Michigan) would amend the plant rehabilitation and industrial development framework established by 1974 PA 198. The bill focuses on when projects commence, clarifies notice requirements, and eliminates the ability to appeal a local unit’s disapproval of an Industrial Facilities Exemption (IFE) certificate. It works alongside SB 792, which addresses the Obsolete Property Rehabilitation Act (OPRA). SB 793 has no direct fiscal impact on local units beyond changes in certificate timing and appeals.

Purpose and intent

  • Align the start date for restoration, replacement, or construction with the issuance of the first building or trade permit, rather than demolition activity.
  • Streamline and tighten the process for approving IFE certificates by removing an appellate path for disapproved applications.
  • Clarify notification duties to applicants and assessors when an IFE certificate is disapproved.
  • Ensure compliance and coordination among local units, the State Treasurer, and state economic development entities in determining eligibility and issuing certificates.

Key provisions

  • Commencement definition (Sec. 3(1)): Commencement for restoration/replacement/construction is the date the first building or trade permit is issued, not the date of demolition activities or demolition permits.
  • Development organizations and district definitions (Sec. 3): Clarifies terms for districts and eligible entities (e.g., economic development corporations, development authorities, TIF authorities).
  • Industrial facilities exemption certificate (IFE) process (Sec. 6 and Sec. 7):
    • Local legislative bodies must approve or disapprove an IFE certificate within 60 days of receiving an application; if approved, the clerk forwards it to the state Commission (and by Oct 31 deadline).
    • If disapproved, reasons must be written in the resolution, and the clerk must return the application.
    • SB 793 would eliminate the appeal right to the Commission for disapproved applications (removing the 10-day appeal window).
    • The Commission, within specific timelines, determines whether a facility is speculative, restoration, or replacement and issues the certificate with timing tied to the project type (e.g., December 31 following issuance for non-speculative facilities; specific use-date rules for speculative buildings).
    • Certificate delivery: issued to the applicant and a certified copy to the local assessor.
  • Notification and concurrence (Sec. 7): Requires the Commission to notify the state Treasurer and obtain written concurrence from the Michigan Strategic Fund or its delegate (the Michigan Economic Development Corporation) to confirm compliance.
  • Other timing and transitional provisions: Several transitional and exception provisions apply to historic certificates and special cases, including adjustments for prior approvals and certain legacy scenarios.

Affected parties

  • Local governmental units (cities, townships, counties) that establish plant rehabilitation districts or industrial development districts.
  • Applicants seeking IFE certificates for manufacturing, restoration, replacement, or speculative facilities.
  • Assessing units and property taxpayers within district boundaries.
  • State entities: State Treasurer, Michigan Strategic Fund, Michigan Economic Development Corporation, and the Michigan Sinking Fund (through delegation).

Procedural and timeline notes

  • New commencement standard would apply to projects going forward (dates tied to first building/trade permits).
  • Disapproval decisions would no longer be subject to an appeal to the Commission.
  • Certification and notification would continue to involve the Commission, with added explicit written concurrence from state economic development authorities.
  • The bill does not modify sunset dates or overall duration of IFE certificates themselves, but clarifies procedural steps.

Summary

SB 793 modernizes and tightens the IFE framework by redefining the start of project activity, tightening notification duties, and removing the ability to appeal disapproved IFE certificates. It aims to improve administrative clarity and interagency coordination while preserving the broader incentives for redevelopment within plant rehabilitation and industrial development districts.

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

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