The Neighborhood Enterprise Zone Act, Public Act 147 of 1992, as amended, allows certain local communities to establish Neighborhood Enterprise Zones (NEZ), and to offer a property tax exemption for the development and/or rehabilitation of residential housing located with these zones.
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. Click here to see an information sheet for further details.
Property owners benefit from the NEZ program through lower property taxes. The tax abatements 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).