Special Tax Abatements

The City of Battle Creek offers several abatements for new and existing businesses. An applicant must be located in an existing district or request a new district to be established. The fee to establish a new district is $200. There is a $150 application fee for all abatement applications, with the exception of the Neighborhood Enterprise Zone (NEZ). The NEZ application fee is $25.

Completed applications are processed locally within thirty (30) days. If approved, the application is forwarded to the State Tax Commission for final approval. In order to be effective for the following tax year, the application must be submitted to the State by October 31st.

Commercial Exemptions

The Obsolete Property Rehabilitation Tax Abatement (OPRA) P.A 146 of 2000
Provides for a tax incentive to encourage the redevelopment of obsolete buildings that are contaminated, blighted or functionally obsolete. The goal is to rehabilitate older buildings into vibrant commercial and mixed-use projects. Other goals are to increase commercial activity, create employment, retain employment and to revitalize urban areas.

Abatements can be granted for a time period of four (4) to twelve (12) years depending on the amount of investment and jobs created.

A minimum investment of $100,000 and creation of 6 full time equivalent (FTE) jobs is required for a four year certificate.  A twelve year certificate requires a minimum investment of $500,000 and creation or 18 FTE jobs.  The jobs requirement can be waived if the project is related to housing.  Additional consideration may be given for projects located in the downtown Battle Creek area.

The applicant cannot be delinquent in taxes and must sign an affidavit that the work would not commence if not for this abatement. 

  1. Obsolete Property Rehabilitation Exemption Application Form 3674 PA 146 of 2000 (PDF)

Commercial Rehabilitation Act P.A. 210 of 2005

Similar to an OPRA, the Commercial Rehabilitation Act (CRA) affords a tax incentive for the rehabilitation of commercial property for the primary purpose and use of a commercial business or multi-family residential facility. The property must be located within an established Commercial Rehabilitation District or have a minimum of three acres. Exemptions are approved for a term of up to 10 years, depending on the amount of investment and jobs created.

A minimum investment of $100,000 and creation of 6 full time equivalent (FTE) jobs is required for a four year certificate.  A ten- year certificate requires an investment of $500,000 and the creation of 18 FTE jobs. The jobs requirement can be waived if the project is related to housing. 

  1. Application - Commercial Rehabilitation Exemption Certificate Act Form 4507 (PDF)

Commercial Facilities Exemption P.A. 255 of 1978, as amended

The Commercial Redevelopment Act, (known as the Commercial Facilities Exemption), PA 255 of 1978, as amended, provides a tax incentive for the redevelopment of commercial property for the primary purpose and use of a commercial business enterprise, reduce unemployment, promote economic growth, increase the tax base, attract new business, encourage expansion of existing industry and create new jobs.

A minimum investment of $100,000 is required.  The investment must be related to a commercial or multi-family residential purpose.  Abatements for Real property investment can be granted up to 12 years following completion.

  1. Application - Commercial Redevelopment Act (PDF)

Industrial Facilities Exemption (IFE) - PA 198

Provides a tax incentive to eligible manufacturers to enable renovation and expansion of aging facilities, assist in the building of new facilities, reduce unemployment, promote economic growth, increase the tax base, attract new business, encourage expansion of existing industry and create new jobs.

A minimum investment of $100,000 is required.  The investment must be related to a manufacturing process.  Abatements for Real property investment can be granted up to 12 years following completion.  

Beginning with assessment year 2016 all new personal property became exempt.  Resolution No. 30 of 12/20/16 discontinued exemptions of personal property.

  1. Form 1012 - Application for Industrial Facilities Exemption Certificate with Instructions (PDF)
  2. Industrial Facilities Exemption Guide (IFE) Guidelines and Instructions (PDF)
  3. Required Attachments (IFE) Required Attachments to Application (PDF)

The Neighborhood Enterprise Zone Act, P.A. 147 of 1992, as amended
 
Provides for the development and rehabilitation of residential housing located within eligible distressed communities. New and rehabilitated facilities applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division. The State Tax Commission (STC) is responsible for final approval and issuance of new and rehabilitated facility certificates.  

Abatements may be granted for up to 15 years.  Minimum investment is $5,000 per owner occupied unit or $7,500 per non owner occupied unit.  
Additional information on available exemptions may be found in the detailed guidelines below.

  1. Form 4775 - Application for Neighborhood Enterprise Zone Certificate (PDF)
  2. Instructions - Existing Structure Application for a Rehabilitation Project (PDF)
  3. Instructions - New Construction -Application for a New Construction Project (PDF)
  4. Instructions for the Transfer of an Existing Certificate (PDF)

Abatement Annual Reports

  1. Abatement Executive Summary For 2021
  2. Abatement List With Resolutions
  3. Abatement List with Resolutions and Company Links
  4. Abatement Status Report 2020
  5. AVAILABLE ABATEMENT GUIDELINES rev 5-5-21

Information on all available State Property Tax Exemptions can be found at the following link:

 https://www.michigan.gov/taxes/0,4676,7-238-43535_53197---,00.html