Real Estate

The National Law Review

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Michigan Expands Brownfield and Commercial Redevelopment Incentives

On July 22, 2026, Governor Whitmer signed three bipartisan bills, Senate Bills 721, 722, and 723, that expand Michigan’s brownfield and commercial redevelopment incentive programs. The new laws increase the amount of tax revenue under the Transformational Brownfield Program, make the program permanent, and expand eligibility, while also extending two commercial property tax incentive programs. The changes may affect developers, businesses, and municipalities considering brownfield redevelopment, commercial rehabilitation, and other redevelopment projects in Michigan. Several new limits and requirements also apply, making early evaluation of the available incentives important when planning a project. What Changed Under Michigan’s New Brownfield Laws? Senate Bill 723 Expands the Transformational Brownfield Program SB 723 makes significant changes to Michigan’s Transformational Brownfield Program. The program allows developers with qualifying redevelopment projects to capture certain state and local tax revenues generated by the project and use those revenues to reimburse eligible project costs. SB 723 increases the statewide tax capture limit from $1.6 billion to $3.5 billion, removes the program’s 2027 expiration date, and expands the program to more communities across Michigan. The legislation also adds affordable housing requirements for certain residential projects and increases public accountability through a searchable project database and required annual milestones.

Michigan · 08-13