Tax Abatements

P.A. 198 of 1974 Industrial Facilities Tax Exemption

Lyon Township offers eligible companies the opportunity to apply for an Industrial Facilities  Exemption under P.A. 198 of 1974, as amended.

The Plant Rehabilitation and Industrial Development Districts Act, (known as the Industrial Facilities Exemption) PA 198 of 1974, as amended, provides a tax incentive to manufacturers to enable renovation and expansion of aging facilities, assist in the building of new facilities, and to promote the establishment of high tech facilities.  An Industrial Development District (IDD)  must be created prior to initiating a project so it is essential that you consult the Lyon Township Economic Development Coordinator, Tina Archer,  before commencing a project.

An Industrial Facilities Exemption (IFE) certificate entitles the facility to exemption from ad valorem real and/or personal property taxes for a term of 1-12 years as determined by the local unit of government. 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 and the Michigan Economic Development Corporation. The State Tax Commission (STC) is ultimately responsible for final approval and issuance of certificates. Exemptions are not effective until approved by the STC.

Application for Industrial Facilities Tax Exemption Certification (State of Michigan Form 1012)

Michigan Department of Treasury link to application instructions, guidelines, checklist, FAQs, sample documents and more. 

Click on  Lyon Township Tax Abatement Program below to view important documents such as the Lyon Township Tax Abatement Policy, an example of the Letter of Agreement (LOA),  required affidavits and sample of the scorecard used to determine a recommended length of term of the abatement. 

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Lyon Township Tax Abatement Program6 documents

  • Tax Abatement Policy
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    Adopted March 2, 2015
  • Letter of Agreement - Example
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    Letter of Agreement Between Twp and IFT Applicant
  • Tax Abatement Score Card
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    Sample of the Score Card Used
  • PA 198 - Industrial Facilities Tax Exemption
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    Public Act 198 - Industrial Facilities Tax Exemption
  • Sample Affidavit of Fees
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  • PA Act 198 - Tax Abatement Process Flow Chart
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