BUILDING INCENTIVES

Incentives that keep our downtown beautiful and energetic.

Façade Improvement Program
Annual program funded by the Downtown Development Authority for front, rear and side façade improvements including painting, cleaning, window/door replacement, masonry repair, awning repair/replacement, slip cover removal, etcetera. Applications are distributed at the beginning of each calendar year and awards are based on program budget, scope of improvement, as well as additional evaluation criteria.  Applications are available in the Document Downloads section on this website.

ADA Accessibility Improvements Income Tax Credits and Deductions
In order to help businesses comply with the Americans with Disabilities Act, the Internal Revenue Service has created income tax credits and deductions to offset expenses incurred for a variety of accessibility improvements.  To determine eligibility, contact your business accountant or the Department of Justice ADA Information Line at (800)514-0301 orwww.ada.gov.

Obsolete Property Rehabilitation Act (OPRA)
Michigan Public Act 146 of 2000 provides for a property tax abatement to assist in the redevelopment of older buildings which are contaminated, blighted or functionally obsolete.  The Michigan State Tax Commission oversees the abatement.  For more information contact  the City of Monroe Economic & Community Development Department at 734-384-9134 or visit http://www.michigan.gov/taxes/0,1607,7-238-43535_53197-213177--,00.html.

Brownfield Redevelopment
Brownfield Redevelopment incentives are available to promote the redevelopment of contaminated, blighted or functionally obsolete properties to make them competitive with non-contaminated or greenfield development sites.  The program incorporates the use of Tax Increment Financing and Michigan Business Tax credits to spur private development and investment on brownfield sites and economically challenged sites in downtowns.  For more information contact the Economic & Community Development Department at 734-384-9134 or visit http://www.michigan.gov/documents/deq/MI_Brownfield_Financial_Incentives_brochure_April_2011_349603_7.pdf

Federal Historic Preservation Tax Credits
The Federal Tax Credit is a 20% income tax credit on the amount spent (interior and exterior) on a certified rehabilitation of income-producing certified historic structure.  Qualifying historic structures must be listed in the National Register of Historic Places.  For more information contact the City of Monroe Economic & Community Development Department at 734-384-9134 or visit http://www.nps.gov/history/tax.htm (National Park Service).

*As stated by the National Parks Service, a certified rehabilitation of a certified historic structure must be “consistent with the historic character of the property and, where applicable, the district in which it is located.”  The US Secretary of the Interior’s Standards are used to determine the certification of a rehabilitation project.

State Historic Preservation Tax Credits
The Michigan Department of Treasury along with the Michigan Department of State offer up to a 25% income tax credit for building owners/lessees on the amount spent on a certified rehabilitation.  Homeowners, commercial property owners and business owners are eligible.  The structure to be rehabilitated must be located in a local Historic District.  Those projects not located in a district may be reviewed based on their overall benefit of the resulting rehabilitation.  Applicants who apply for and receive the Federal Historic Preservation Tax Credits are only eligible to receive a 5% State Tax Credit. Enhanced and Special Consideration Credits are also available and can be combined with the basic credits. For more information contact the City of Monroe Economic & Community Development Department at 734-384-9134 or visit www.michigan.gov/shpo (State Historic Preservation Office).

State Historic Preservation Grant Program
The State Historic Preservation Office facilitates this grant which provides funding to Certified Local Governments for projects rooted in preservation and based on the goals for the program each year.  There is a broad range of qualifying activities and a 40% match of funds for the project is required. For more information contact the City of Monroe Economic & Community Development Department at 734-384-9134 or visit www.michigan.gov/shpo (State Historic Preservation Office).

Preservation Easement
An agreement between a property owner and a local agency or organization which then maintains the defined historic physical character of the property, including the right to review, approve or deny any alterations.  The property owner receives a tax credit for the value of the property within the easement.  For more information contact City of Monroe Economic & Community Development Department at 734-384-9134 or your attorney and accountant.

Reminder: Contact the City of Monroe Building Department at 734-384-9186, or 120 East First Street, for the latest information on the Michigan Rehabilitation Code for Existing Buildings prior to starting a renovation project.