Obsolete Property Rehabilitation Act Tax Incentives

Current understanding

The Obsolete Property Rehabilitation Act (2000 PA 146, MCL 125.2782 et seq.) allows qualified local units of government to establish obsolete property rehabilitation districts and grant property tax exemptions to encourage redevelopment of blighted, contaminated, or functionally obsolete commercial and commercial housing properties. SB 0792 (103rd Legislature) amends sections 2, 6, 7, 14, 16, and 17 of the Act to modify administrative provisions governing these tax incentives; the bill has passed one chamber. Specific changes to definitions, application procedures, certificate terms, and reporting requirements remain to be recorded from the enrolled text.

Evidence log

• 2026-06-18 — Economic development: neighborhood enterprise zones; allowable percentage of neighborhood enterprise zones; modify. Amends sec. 3 of 1992 PA 147 (MCL 207.773).: cross-connection with neighborhood-enterprise-zone-act: Companion property tax abatement acts for neighborhood/residential vs. obsolete commercial redevelopment; both amended in coordinated economic-development bill packages. (novelty: 2)
• 2026-07-02 — Economic development: plant rehabilitation; industrial facility tax; modify. Amends secs. 3, 6, 7 & 9 of 1974 PA 198 (MCL 207.553 et seq.).: cross-connection with industrial-facilities-tax-act: SB 0793 amends the Industrial Facilities Tax Act while parallel SB 0792 amends the Obsolete Property Rehabilitation Act; both are part of the same economic-development amendment package. (novelty: 2)
• 2026-07-02 — Economic development: obsolete property and rehabilitation; obsolete property rehabilitation act; modify. Amends secs. 2, 6, 7, 14, 16 & 17 of 2000 PA 146 (MCL 125.2782 et seq.).: cross-connection with commercial-rehabilitation-act: Both statutes authorize local property tax abatements for redevelopment districts and are being amended in parallel (SB 0792 and SB 0722) as part of the same 103rd Legislature economic-development package. (novelty: 2)

Open questions

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