Real Estate Tax Incentives and Economic Development

Credits and incentives include the following:

New Markets Tax Credits
Dykema attorneys have been involved with the NMTC program since its inception. We represent developers, lenders, credit investors, and Community Development Entities (CDEs) in NMTC projects. We assist CDEs obtain CDE certifications obtaining credit allocations and provide guidance on a myriad of transactional issues.

Historic Tax Credits
This program provides substantial federal—and often state—tax credits for the rehabilitation of historic structures. We are experienced in structuring transactions for investors, developers, and lenders that qualify for these and other related credits and incentives, such as historic conservation easements.

Tax Increment Financing and Special Purpose Districts
Dykema attorneys have assisted a wide variety of companies in establishing tax increment financing and special purpose districts,  such as business improvement districts, to provide for a source of capital for new or expansion projects. Once these districts are established, our team helps to negotiate agreements with government entities and guide the client through the legislative approval process. 

Real Estate and Personal Property Tax Abatement Programs
Many state and local governments offer programs to reduce real estate and personal property tax burdens, including special property tax classifications for certain types of business, direct abatement of taxes and fee in lieu of taxes agreements. Dykema attorneys have extensive experience with these different programs and can help mitigate a significant operating cost, property taxes, for many clients.

Corporate Income Tax Credits
Projects that involve significant job creation, retention, and capital investment often qualify for state corporate income tax credits. Those credits can be available based on job creation, investment in manufacturing machinery and equipment, and research and development expenditures. Our team helps to identify those tax credits, maximize their value and ensure compliance throughout the project life.     

Conservation Easements
Under the Internal Revenue Code, a property owner can grant a conservation easement to a qualified nonprofit organization and claim a deduction based on the foregone use of the property. Easements can be granted on scenic properties as well as historic structures. Dykema has represented organizations receiving such easements, building owners granting easements on historic structures. We also advise clients that seek out and structure transactions that monetize conservation easements.