“There are incentives available.” You’ll hear that phrase in almost every site-selection conversation. But what are the specifics? For a manufacturer weighing Lenawee County, the Adrian-Tecumseh SmartZone can get specific fast: thirteen local, state, and federal programs, layered together, built to lower the cost of getting a new facility up and running here.
Three Types, One Important Caveat
Economic development tax incentives generally fall into three buckets. Tax relief lowers what you owe. Grants hand you money you don’t repay, tied to specific commitments. Financing programs get you capital you wouldn’t otherwise qualify for, or wouldn’t get at a workable rate.
Access to any of these programs isn’t guaranteed. Eligibility varies by program and by project, and a manufacturer should treat the list below as what’s potentially on the table, not a menu where every item is automatically available.
Local Programs Rooted in the SmartZone Itself
Four programs originate at the local level, tied directly to the SmartZone’s own structure and to Lenawee County’s municipalities.
The Industrial Facilities Tax Exemption offers a property tax exemption on eligible industrial personal property and real property improvements, which lowers your carrying cost during the years a new facility is least profitable. The 100% Personal Property Tax Exemption goes further for qualifying businesses, removing personal property taxes entirely to reduce equipment costs.
The Local Development Finance Authority (LDFA) is the mechanism underneath the SmartZone itself. It directs tax increment revenue toward infrastructure, site preparation, and business support within SmartZone boundaries, meaning growth the district generates gets reinvested into that same district rather than disappearing into a general fund. That money stays local. For sites carrying environmental baggage, the Brownfield Redevelopment Financing Act funds cleanup and redevelopment of contaminated or underutilized properties through the same tax-increment-financing structure.
State Programs Through Michigan’s Economic Development Corporation
Seven programs run through the state, most administered by the Michigan Economic Development Corporation (MEDC). That’s the most of any tier.
The Michigan Business Development Program offers grants, loans, and other economic assistance to businesses creating jobs or making capital investments, while the Critical Industry Program provides financial assistance specifically for significant capital investments tied to job creation or retention. On the workforce side, Jobs Ready Michigan funds customized training programs for businesses creating new jobs or retaining existing positions, and the Michigan New Jobs Training Program channels community college worker training support to expanding employers.
Manufacturers with a facility-heavy project should also know about the State Education Tax Abatement, which reduces state education tax for eligible industrial and commercial facilities, and the MDOT Freight Economic Development Program, which funds access road and infrastructure improvements serving freight-generating businesses. Early-stage technology companies have their own path in the Michigan Pre-Seed Fund, which supplies capital for Lenawee County startups specifically.
Federal Programs Layered On Top
Two federal-level programs round out the portfolio. The Infrastructure Investment and Jobs Act brings federal funding for transportation, broadband, and utility improvements. The Inflation Reduction Act offers tax credits for clean energy, advanced manufacturing, and sustainability investments. That lines up directly with Lenawee County’s targeted industries in plastics and chemicals, and with nonmetallic mineral production too.
Where These Land: Real Sites in Lenawee County
Programs only matter when there’s land to apply them to. The Adrian Industrial Park sits with direct access to US-223 and M-34, and the Tecumseh Business and Technology Campus offers 158 acres of certified, shovel-ready greenfield land. That access reaches past the county line, too: both roads feed into I-94, putting trucks from this corridor within a day’s drive of 40% of the U.S. population. Location matters just as much. Both sites target the same industries the incentive programs above are built to support: nonmetallic mineral products, chemicals, plastics and rubber, wood products, and animal production and aquaculture.
More Than a Tax Line
Every program above lowers a cost. None of them explain why employees stick around once a facility is built. That part comes from the county itself. Lenawee County’s cost of living runs about 4% below the national average. An operations manager earning $95,000 here can own a home and still put money away for retirement, while the same salary in Ann Arbor or Detroit gets eaten by housing and transportation costs alone.
The workforce is already local, too. Roughly 3,000 Lenawee County residents currently commute 50-plus miles each day to jobs in Detroit, Ann Arbor, or Toledo. They’ve already chosen to live here. A local employer just has to give them a reason to stop driving past.
Why Stacking Matters
A project rarely draws on just one program. A manufacturer might pair the Industrial Facilities Tax Exemption with a Michigan Business Development Program grant and MDOT infrastructure funding, all layered onto the same build. Stacking adds up fast. That’s where the real value shows up: a regional LDFA that can move quickly and work through the combination directly with you.
Don’t assume you have to pick one program. Ask which combination applies to your specific project instead.
Talk Through Your Eligibility
Thirteen programs across three levels of government is a lot to sort through alone, and which ones actually apply depends on your industry, your investment size, and which site you’re considering. None of these programs is guaranteed for any project. Eligibility is decided case by case, so treat each one as a possibility until your project has been reviewed. That’s exactly the conversation to have with the Adrian-Tecumseh SmartZone before you commit to a location. If you’re evaluating ready-to-build sites in Southeast Michigan, reach out directly and find out which of these programs your project actually qualifies for.