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Renaissance Zone

What is a Tax-Free Renaissance Zone?

Michigan's Tax-free Renaissance Zones are state-designated zones that are virtually tax-free for any business or resident presently in or relocating to a zone. The Zones are designed to provide selected communities with the most powerful market-based incentive - NO TAXES - to spur new jobs and investment. Each Renaissance Zone can be comprised of up to six smaller zones (sub zones) that are located throughout the community to provide businesses more options on their location choice.

Just how "tax-free" are Tax-free Renaissance Zones?

Locate in any of the Renaissance Zones and waive the following local and state taxes:

These taxes represent nearly all state and local taxation on a Michigan business.

Are there any other taxes that a business would pay in a Renaissance Zone?

A business would pay unemployment insurance, social security taxes, workers' compensation, sewer and water fees that are either federal taxes or fees for service. Businesses would also pay property taxes, which result from local bonded indebtedness or special assessments so as not to jeopardize the community's current bonds. Businesses would also pay Michigan's six percent sales tax. The state does not allow local sales taxes.

When does the tax-free status of a zone begin?

The Tax-free Renaissance Zone began Jan. 1, 2001. A business location in a 15-year zone receives the benefit for as long as the zone designation lasts. If a business moves into a 15-year zone in the year 2004, it has 12 years of tax-free status remaining.

What's the Catch?

There's no catch. We are up front about which taxes are waived, which taxes that are not waived, where your business needs to be located, and how long the benefit lasts. We want your business in this targeted area and we are willing to make it worthwhile for you to locate here.

Bear in mind that taxes are eliminated to spur your business's growth and investment.