P.A. 198 Industrial Property Tax Abatement

A 50% abatement on all local real and personal property taxes is available (personal property will automatically be exempt from the 6 mill State Education Tax and 18 mill for local schools) for a period of up to 12 years for manufacturers building new plants, expanding existing plants, renovating aging plants, or adding new machinery and equipment. Industrial plants eligible for tax abatements are those that primarily manufacture or process goods or materials by physical or chemical change. For replacement of obsolete plants or machinery, a 100% exemption from property tax on the value of the improvements is possible with local approval.

St. Clair County Project Utilizing Incentive:

GMA Cover Corp.

In 2004 GMA was awarded a multi year contract with the U.S. Army to produce the Ultra Light-Weight Camouflage Net Systems (ULCANS) providing the military with a second source for the multi-spectral camouflage nets. The EDA assisted GMA in its site search and purchase of their first facility to accommodate the company’s growth at that time.

In 2007 the EDA again assisted GMA with a site search and negotiations of a second facility to accommodate the company’s continued growth in the Port Huron Industrial Park.

EDA staff coordinated a package of assistance including property tax abatements, SBT credits, State investment tax credits and new worker training assistance through various agencies including the MEDC and the City of Port Huron.

Industrial Property Tax Abatements were approved through the City of Port Huron and were used for Obsolete Property Rehabilitation, real and personal property tax abatements.