State Incentives

The Michigan Economic Development Corporation offers several incentives that are handled at the local level.

Tax Abatement Programs

• PA 146, the Obsolete Property Rehabilitation Act Exemption (OPRA) provides property tax exemptions for rehabilitated commercial housing properties. Properties must meet eligibility requirements and be located in an OPRA District as defined by the City of Ferndale. The State Tax Commission (STC) is responsible for final approval and issuance of OPRA certificates.
• PA 198 property tax abatements were created by the State of Michigan to provide a stimulus in the form of significant tax incentives to industries that renovate and expand aging plants, build new plants, and promote establishment of research and development laboratories.
• Property tax abatement is an incentive provided primarily to build new plants in Michigan or renovate and expand aging assembly, manufacturing, and research plants. The incentive comes in the form of abated property taxes. The value of the project added will produce 50% of the taxes for a set period of time and then resume to the full tax value at the end of the abatement period. Read the City of Novi's Tax Abatement Policy at the link below.
• Public Act 328 allows eligible businesses to abate personal property taxes on new investments in the City of Ferndale. Eligible projects include manufacturing, mining, research and development, wholesale trade, and office operations.
• In 2014, the legislature finalized revisions to the Michigan Personal Property Tax (PPT) reform. Under this revised package, the small “essential services assessment” (ESA) that manufacturers pay to cover their costs associated with local government police, fire, ambulance, and jail services will now be a flat, statewide rate that is fixed and requires only one form and payment to be submitted to the state. 
• The Michigan Business Development Program is a new incentive program available to eligible businesses that create qualified new jobs and/or make qualified new investment in Michigan. This is a new incentive program available from the Michigan Strategic Fund (MSF) in cooperation with the Michigan Economic Development Corporation (MEDC). The program is designed to provide grants, loans, and other economic assistance to businesses for highly competitive projects in Michigan that create jobs and/or provide investment.

Energy Programs

The Michigan Saves Business Energy Financing Program has negotiated hassle-free, fast financing for energy improvement enhancements up to $150,000 for as low as 5.9% for up to 5 years. As a special incentive for businesses in the food industry, Michigan Saves offers a 1.99% rate for a limited time, and if you cut your building's energy consumption by 20%, you’ll receive a $2,000 rebate.