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Michigan offers tax incentives to grocery stores in underserved areas |
09.11.2009
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LANSING, Mich.-The state of Michigan is offering tax incentives to grocery retailers that expand, improve or open stores in underserved areas.
Public Act 231, which amends Michigan's Commercial Rehabilitation Act, is geared to support grocery store development and give citizens better access to fresh food by allowing the food stores to request that improvements made not be taxed for up to 10 years.
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The Act was signed into law on July 17, 2008. Prior to Dec. 31, 2009, improvements may start as much as 42 months before the application for the incentive is filed. After Dec. 31, 2009, they must not start more than 6 months before the application for the incentive is filed.
Underserved areas are identified using three criteria: low and moderate income, below average density of grocery stores and travel limitation to grocery stores. These areas are characterized by limited access to food retail establishments that offer fresh and frozen food options such as meat and poultry, fruits and vegetables and dairy products.
"This program provides another incentive to encourage businesses to grow here in Michigan," said State Treasurer Robert J. Kleine, in a prepared statement. "The program serves the dual purpose of creating jobs and broadening access to healthy food items families need."
Approximately 54 percent of all census tracts in Michigan meet the criteria for an underserved area, according to an analysis by the Michigan Department of Agriculture and the U.S. Department of Agriculture.
A recent report by Michigan Food Policy Council recommended that tax incentives be considered as the state works to address underserved areas and increase the number of retail outlets with fresh food options.
"Grocery store development in underserved areas has the potential to create a positive ripple effect in Michigan, including jobs and community economic development, while combating one potential factor in the diet-related disease rates we see today," said Kirsten Simmons, executive director of the Michigan Food Policy Council, in a prepared statement.
Public Act 231 was sponsored by Senator Mark Jansen and received support from the grocery industry, food system and health experts and local economic development organizations, according to a state press release.
"As the author of this law, my goal was to give Michigan families better access to fresh food, to encourage partnerships with local growers and to spur economic development," Jansen said in a statement.
Forms and information are available online at the Michigan Department of Treasury's Web site at www.michigan.gov/propertytaxexemptions.
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