A coalition of local community organizations, economic development leaders, and housing advocates from across Michigan are voicing support for bipartisan legislation that would create a Community Redevelopment Tax Credit (CRTC) to help redevelop vacant, blighted, and historic buildings in communities throughout the state.
The legislation — Senate Bills 923, 924, and 925 — are sponsored by Sens. Sam Singh (D-East Lansing), Stephanie Chang (D-Detroit), and John Damoose (R-Harbor Springs).
The House Bills — 5798, 5799, and 5809 — are sponsored by Reps. Mark Tisdel (R-Rochester Hills), and Nancy Jenkins-Arno (R-Rollin Township).
The bills, if passed, would establish a new tool to attract private investment and support redevelopment projects in downtowns, neighborhoods, and commercial corridors.
With key state redevelopment funding sources expiring and demand for existing programs far exceeding available resources, supporters say the legislation comes at a critical moment for communities across Michigan.
Supporters say the legislation would restore a critical economic development tool that Michigan previously used to address blight, rehabilitate historic structures, and support community redevelopment projects.
The bills also would help level the playing field with neighboring states that already offer similar redevelopment incentives and are competing aggressively for private investment and federal funding.
“Communities across Michigan are working hard to redevelop vacant and underutilized buildings that hold enormous potential,” says Singh. “The Community Redevelopment Tax Credit creates a consistent, accountable tool to close financing gaps and move projects from concept to construction.”
Redevelopment projects are often complex and costly, especially when they involve older or contaminated properties, says Tisdel. “This legislation gives communities a practical tool to overcome those barriers and return long-vacant sites to productive use,” he says.
The proposed CRTC would provide up to $200 million annually in tax credits to support redevelopment projects across the state. Projects would only receive the credit after construction is complete, ensuring accountability for the program.
The legislation also prioritizes projects that deliver strong community benefits, local support, and housing. Redevelopment efforts located in historic buildings, rural communities, and low- and moderate-income areas would be eligible for enhanced credits, while at least 20 percent of the annual credits would be reserved for small or rural projects.
Michigan currently relies primarily on grant and loan programs such as the Community Revitalization Program and the Revitalization and Placemaking Program to support redevelopment.
Those programs, however, depend on annual state appropriations and have been unable to keep up with demand for redevelopment funding, especially as RAP funding expires and CRP funding is limited to about $8 million for the current fiscal year. In recent years, demand for these programs has exceeded available funding by more than three to one.
In addition, the CRTC would encourage projects that leverage federal programs such as the Low-Income Housing Tax Credit, Historic Tax Credit, and New Markets Tax Credit, helping bring additional federal and private investment into Michigan communities.
“It’s critical for Michigan to have tools that allow us to compete for private and federal investment,” says Eric Hanna, president and CEO of Michigan Community Capital, a 501(c)(3) nonprofit. “The CRTC creates a predictable framework that helps developers and lenders bring high impact, but complex projects to fruition.”
Supporters say the new tax credit would provide a more predictable and reliable tool for redevelopment while helping Michigan compete more effectively with states like Ohio, Indiana, Illinois, and Wisconsin that already offer similar incentives to attract redevelopment investment.
“The CRTC will be a gamechanger for redevelopment efforts across Michigan,” says Dave Blaskiewicz, president and CEO of Invest Detroit. “It strengthens our ability to support projects that bring housing, retail, and long-term economic activity to neighborhoods that need it most.”
The coalition supporting the legislation includes community development organizations, local economic development agencies, local elected leaders, developers, and private-sector partners working in communities across Michigan.
Supporters encouraged lawmakers to move the legislation forward to help unlock redevelopment opportunities in cities, towns, and rural communities statewide.
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