Tax Incentives:  Neighborhood Enterprise Zone (NEZ)

Upon City Council’s establishment of a Neighborhood Enterprise Zone (NEZ), property owners may apply for a certificate of exemption for the development and/or rehabilitation of residential housing located within the NEZ. There are various types of NEZ zones and exemptions certificates, certain qualification criteria to designate an NEZ and minimum investment criteria in order to qualify for an exemption.

Property owners benefit from the NEZ program through lower property taxes. The tax abatement come from the rehabilitation of existing properties or through new construction. Once rehabilitation and/or new construction is complete, a Neighborhood Enterprise Zone Certificate may be issued by the Michigan State Tax Commission, which serves as the property owner's proof of eligibility for the applicable tax abatement(s).