Gov. Rick Snyder signed the Michigan Thrive legislation into law on Thursday.
More than 60 economic development organizations, cities and chambers of commerce worked in support of the legislation.
The goal is to revitalize and redevelop brownfield sites into thriving developments in their communities.
The announcement was made at the Bearinger Building in downtown Saginaw.
"We would like to thank Gov. Rick Snyder and legislative leaders from both parties for recognizing the importance of this game-changing legislation for communities across Michigan. The Michigan Thrive legislation will help revitalize communities big and small in every corner of our state, and will do so in the most fiscally responsible manner possible. And it accomplishes all this while posing no risk to taxpayers and guaranteeing that the State of Michigan comes out ahead," MIthrive Coalition spokesperson Dan Austin said.
The bill would allow developers looking to renovate blighted buildings to get a big reimbursement.
The package of bills will give tax incentives to investors who develop some of the most environmentally challenged and abandoned buildings in the so-called rust belt communities.
Developers will have to invest $15 million to $500 million in communities, depending on their size, to qualify for the incentive that captures both state income and sales taxes to help pay for the projects.
Snyder said the legislation is at no risk to the state or taxpayers and using the incentives will help bridge the gap between the cost of the redevelopment and the businesses willing to do it.
Officials said the package of bills could unlock at least $5 billion in new development throughout Michigan and would bring jobs and growth to cities across the state.
Joann Crary, the president of Saginaw Future, said this will help breathe new life into places like Saginaw and Flint.
"This new law is going to make these projects feasible when they couldn't have happened before," Crary said.
Snyder believes the legislation will entice more investors to take a chance redeveloping old buildings.
"This will be a catalyst that will lead to further development that in fact hopefully won't need additional support because we'll be so strong and doing so well. And I think you're going to see that take place and it's very exciting," Snyder said.
The legislation allows for developers to collect a portion of income and sales taxes generated by their development.
State Sen. Ken Horn sponsored the package saying this will give urban communities new life with no cost to the state or taxpayers.
"This may end up being one of the most significant community redevelopment packages that we've seen in decades," Horn said.
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