Transformational Brownfield Plan (TBP)

A TBP is a type of Brownfield Plan under Michigan Act 381 that allows for the capture of three new sources of tax increment revenues associated with a project, in addition to incremental revenue from property taxes. The three kinds of revenues from tax capture are as follows: (1) Construction Period Tax Capture Revenues; (2) Income Tax Capture Revenues; and (3) Withholding Tax Capture Revenues.

These tax increment revenues can be used in financing a wide array of eligible activities, including “any demolition, construction, restoration, alteration, renovation, or improvement of buildings or site improvements on eligible property, including infrastructure improvements that directly benefit eligible property.” Capture of income and withholding tax revenue is limited to up to 20 years. Capture of property tax increment revenue is limited to up to 30 years. TBP projects are also eligible for construction period sales and use tax exemption.

Pure Muskegon has not filed for TBP as it has not submitted a final development plan.  This incentive would be available to potential developers. More information is available upon request.