Industrial Facilities Tax Exemption

July 14, 2003


In 1974, Public Act 198 set up an industrial property tax abatement program. HB 4010, passed in 2003, adds the creation or synthesis of biodiesel fuel to the definition of "Industrial Property." Futhermore, this definition also includes electric generating plants fueled by biomass until 12/31/07. Plant rehabilitation and industrial development districts may be established to provide such tax abatements for up to 12 years.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Michigan
Incentive Type: Property Tax Incentive
Web Site:
Administrator: Michigan Department of Treasury
Start Date:
Eligible Renewable/Other Technologies:
  • Biomass
  • Renewable Fuels
Incentive Amount: 100% property tax abatement for biodiesel production plants
Maximum Incentive: Exemption may last up to 12 years


Name: PA 198 (1974)
Name: HB 4010 (2003)


Name: Taxpayer Assistance - MI DOT
Organization: Michigan Department of Treasury
Address: P.O. Box 30471
Lansing MI 48909-7971
Phone: (517) 373-2408

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.