A coalition of community organizations, economic development leaders and housing advocates across Michigan is backing bipartisan legislation aimed at revitalizing vacant, blighted and historic properties statewide.

The proposal — a package of State Senate and House bills — would create a Community Redevelopment Tax Credit (CRTC) to attract private investment and support redevelopment in downtowns, neighborhoods and commercial corridors.

Supporters say the effort comes at a critical time, as key state funding sources expire and demand continues to exceed available resources.

Backers describe the credit as a revival of a previously used economic development tool that helped address blight, rehabilitate historic structures and advance community redevelopment.

“Communities across Michigan are working hard to redevelop vacant and underutilized buildings that hold enormous potential,” said Sam Singh (D-East Lansing), the Michigan Senate Majority Floor Leader. “The Community Redevelopment Tax Credit creates a consistent, accountable tool to close financing gaps and move projects from concept to construction.”

The proposal would authorize up to $200 million annually in tax credits, awarded only after project completion — a structure supporters say ensures accountability.

“Redevelopment projects are often complex and costly, especially when they involve older or contaminated properties,” said State Rep. Mark Tisdel (R-Rochester Hills). “This legislation gives communities a practical tool to overcome those barriers and return long-vacant sites to productive use.”

Developments in historic buildings, rural communities and low- to moderate-income areas would qualify for enhanced credits, while at least 20% of funding would be set aside for small or rural projects.

Supporters say the measure would also help Michigan compete with neighboring states that already offer similar incentives to attract private investment.

“I am proud to be part of this important legislation that will help us continue revitalizing Detroit’s neighborhoods and addressing the housing crisis,” said State Sen. Stephanie Chang (D-Detroit). “Across the city, redevelopment is strengthening commercial corridors and expanding access to much-needed attainable housing.”

Michigan currently relies on grant and loan programs tied to annual appropriations, which have struggled to meet demand in recent years, leaders added.

The CRTC would also encourage projects that leverage federal incentives.

“It’s critical for Michigan to have tools that allow us to compete for private and federal investment,” said Eric Hanna, president and CEO of Michigan Community Capital. “The CRTC creates a predictable framework that helps developers and lenders bring high impact, but complex projects to fruition.”

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