Bill > HB5798

This bill establishes a new community development tax credit program to incentivize investment in eligible properties, which can include facilities, historic resources, blighted property, or functionally obsolete property. Qualified taxpayers can receive a credit of 25% of their eligible investment, with the potential to increase to 50% for projects involving historic resource rehabilitation, rural locations, or areas with low to moderate income (LMI) households. To qualify, taxpayers must apply to the Michigan Strategic Fund (the "fund") for preapproval, demonstrating local support, project feasibility, and the need for the credit, with a detailed application and compliance process. Projects generally must be completed within three years, though extensions are possible for larger investments. The program has annual credit limits, with a portion reserved for rural or small projects, and unused credits can be carried forward. Taxpayers can also monetize and assign their credits to others. The bill defines key terms like "eligible investment" (which includes demolition, construction, site improvements, and certain professional fees, but excludes many "soft costs" like developer fees and financing costs) and "eligible property" to clarify program scope.