City of Coldwater Incentives
A variety of economic development incentives and assistance programs are available for redevelopment projects within the City of Coldwater. Below you will find a set of tools available locally to encourage expansion, retention and new development within the City.
The City of Coldwater is able to access other grant opportunities and incentives through the State of Michigan through being a Select-Level Michigan Main Street Community and a Core Community. The City has also been pursing Redevelopment Ready Community certification with MEDC. Some examples of grant opportunities made available through these programs include: Match on Main and the Community Revitalization Program.
Please get in touch if you have any questions or if you need more information about any of the offered incentive programs.
The MainStreet Board/DDA seeks to promote improvements that maintain the historical significance and uniqueness of downtown structures. Administered by the MainStreet/DDA in cooperation with the Historic District Commission, the following incentive programs are offered:
Low Interest Loan Pool
Century Bank and Trust and Southern Michigan Bank and Trust have each contributed $400,000 to a loan pool offering 1% below prime interest rates, floating, for 5 years with a floor of 3.25%. Funds are designated to projects which must include, but are not limited to façade improvements. There is a maximum loan amount is $100,000 per project. Full program guidelines can be found here.
DDA Façade Rebate Program
The Rebate program is a cash reimbursement for approved project expenditures offered by the DDA towards façade improvement projects. Applicants may also include interior and structural improvements with their application, but these are not required. Full program guidelines can be found here.
Historic Preservation Tax Credits
Federal Tax Credit
A 20% federal income tax credit is available for depreciable historic resources rehabilitated for commercial, industrial, agricultural, or rental residential purposes. To qualify for the credit, the historic resource must be listed in the National Register of Historic Places either individually or as part of a registered historic district. The National Park Service, the Internal Revenue Service, and the State Historic Preservation Office administer the federal tax credit program.
Learn more about the Federal Historic Tax Credit.
Michigan Historic Preservation Tax Credit
A state income tax credit of up to 25% is available for the qualified rehabilitation of certified historic commercial and residential properties. The State Historic Preservation Office administers the program in partnership with the Michigan Department of Treasury.
Learn more about the Michigan Historic Tax Credit.
Payment in Lieu of Tax (PILOT) for Affordable Housing
The PILOT program offers nonprofit developers of housing that is financed via the Michigan State Housing Development Authority or the Department of Housing and Urban Development to apply for a Payment in Lieu of Tax per PA 346 of 1966. The amount of the PILOT is negotiated between the developer and the local unit of government and is based on a share of the net rental income derived from the housing development. These payments are distributed on a pro-rata basis to all local taxing jurisdictions.
Obsolete Property Rehabilitation Act (OPRA)
The Obsolete Property Rehabilitation Act (OPRA), PA 146 of 2000, as amended, provides property tax exemptions for commercial and commercial housing properties that are rehabilitated and meet the requirements of the Act. Exemptions are approved for a term of 1-12 years as determined by the City.
Commercial Rehabilitation District - Division Street
The Commercial Rehabilitation Act, PA 210 of 2005, as amended, affords a tax incentive for the rehabilitation of commercial property for the primary purpose and use of a commercial business or multi-family residential facility. The property must be located within an established Commercial Rehabilitation District. Exemptions are approved for a term of 1-10 years, as determined by the local unit of government. The property taxes are based upon the previous year's (prior to rehabilitation) taxable value. The taxable value is frozen for the duration of the certificate. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division. The State Tax Commission (STC) is responsible for final approval and issuance of certificates. Exemptions are not effective until approved by the STC.
Industrial Retention & Growth
Industrial Facility Tax (IFT) Abatement
To encourage greater industrial development and spur manufacturing opportunities for developers, business owners, and laborers, the City of Coldwater offers tax incentives for development involving industrial-based businesses. These incentives can be applied in the expansion of pre-existing facilities, renovation of aging facilities, and constructing of new facilities, per PA 198 of 1974. The Industrial Facilities Exemption certificate can provide property tax abatement for a maximum of 12 years, based on the criteria determined by the City.
Opportunity Zones were enacted in the 2017 Tax Cuts and Jobs Act. The program is designed to incentivize patient capital investments in low-income communities nationwide that have been cut off from capital and experienced a lack of business growth. There are three types of tax incentives that relate to the treatment of capital gains, each of the incentives are connected to the longevity of an investor's stake in a qualified Opportunity Fund that provides the most upside to those who hold their investment for 10 years or more.
Core communities have the ability to use brownfield tools not only on contaminated property, but blighted and functionally obsolete sites as well. In addition, the tax increment financing component can pay for demolition, site preparation, public infrastructure and lead and asbestos abatement, as well as environmental remediation.