Am I eligible for the Renaissance Zone Deduction?
To be eligible, you must meet all of the following requirements:
- Be a permanent resident of a Renaissance Zone designated prior to January 1, 2012, for at least 183 consecutive days
- Be approved by your local assessor's office
- Must not be delinquent for any state or local taxes abated by the Renaissance Zone Act
- Must file MI-1040 each year
- Have gross income of $1 million or less
If you were a full-year resident of a Renaissance Zone, you may subtract all income earned or received. Unearned income, such as capital gains, may have to be prorated. If you lived in the zone at least 183 consecutive days during 2020, you may subtract the portion of income earned while a resident of the zone.
Certain Renaissance Zones began to phase out in 2007. The tax exemption is reduced in increments of 25% during the zone's final 3 years of existence. If you are a resident of a zone that is phasing out (check with your local unit of government), you
must reduce your deduction as follows:
- 25% for the tax year that is 2 years before the final year of designation as a Renaissance Zone
- 50% for the tax year immediately preceding the final year
of the designation as a Renaissance Zone
- 75% for the tax year that is the final year of the designation as a Renaissance Zone.
For additional information regarding
qualifications for the Renaissance
, contact your local assessor's office.