Blighted means property that has been declared a public nuisance in accordance with a local housing, building, plumbing, fire, or other related code or ordinance; is an attractive nuisance to children because of physical condition, use or occupancy; is a fire hazard or otherwise dangerous to the safety of persons or property; has had the utilities, plumbing, heating or sewage permanently disconnected, destroyed, removed or rendered ineffective so that the property is unfit for its intended use; or is tax reverted property owned by a qualified local governmental unit, county or this state. Blighted property must be located in a qualified local governmental unit.

Brownfield plan means a plan that meets the requirements of section 13 and is adopted under section 14 of the Brownfield Redevelopment Financing Act by a local Brownfield Redevelopment Authority and approved by the municipality. A brownfield plan may apply to one or more parcels of eligible property whether or not those parcels are contiguous and may be amended to apply to additional parcels of eligible property. For SBT credit purposes, a brownfield plan must include a description of the eligible property and its location, the basis of its eligibility, and a summary of the eligible activities and their estimated cost, whether or not Tax Increment Financing will be used. It should also include a description of the planned project or development. Because a project is the total of all eligible investment on an eligible property, only one SBT brownfield project can be approved on the eligible property designated. An existing brownfield plan may be amended to apply to additional parcels of eligible property or to divide a larger eligible property into separate smaller eligible properties.

Eligible activities mean baseline environmental assessment activities, due care activities, additional response activities and relocation of public buildings or operations for economic development purposes. In a qualified local governmental unit, eligible activities also mean infrastructure improvements that directly benefit eligible property; demolition of structures; lead or asbestos abatement; and site preparation.

Eligible investment means demolition, construction, restoration, alteration, renovation, or improvement of buildings or site improvements on eligible property and the addition of machinery, equipment and fixtures. These activities must occur after the date that eligible activities on the property have begun pursuant to a brownfield plan and after a preapproval letter has been issued. Certain "soft" costs, such as legal, engineering, and architectural expenses, are included if they are directly related to the demolition, construction, restoration, alteration, renovation, or improvement of buildings or site improvements on eligible property and the addition of machinery, equipment and fixtures to eligible property. To the extent that any investment is reimbursed by another party, it will not qualify for a credit.

Eligible property means property for which eligible activities are identified in a brownfield plan under the Brownfield Redevelopment Financing Act, that was used or is currently used for commercial, industrial, or residential purposes and is either a facility (environmentally contaminated property), functionally obsolete, or blighted. An eligible property may include parcels that are adjacent and contiguous to the qualified property if the development of the adjacent and contiguous parcels is expected to increase the captured taxable value of the property. Functionally obsolete or blighted property must be located in a qualified local governmental unit.

Facility means any area, place, or property where a hazardous substance in excess of the concentrations that satisfy the requirements of section 20120a(1)(a) or (17) of the natural resources and environmental protection act have been released, deposited, or disposed of, or otherwise comes to be located.

Functionally obsolete means that the property is unable to be used to adequately perform the function for which it was intended due to a substantial loss in value resulting from factors such as overcapacity, changes in technology, deficiencies or superadequacies in design, or other similar factors that effect the property itself or the property's relationship with other surrounding property. Functionally obsolete property must be located in a qualified local governmental unit. If a project is on a property that is functionally obsolete, an affidavit signed by a level 3 or level 4 assessor must be submitted stating that the property is functionally obsolete and the basis for that opinion.

A multiphase project means a project for which the total of all credits is $1,000,000 or less that has more than one component, each of which can be completed separately. A multiphase project must be an industrial or manufacturing project.

A project is the total of all eligible investment on an eligible property.

A qualified taxpayer must be a taxpayer who owns or leases eligible property, and must certify that the Department of Environmental Quality (DEQ) has not sued or issued a unilateral order to the taxpayer pursuant to part 201 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20101 to 324.20142, to compel response activity on that property. In addition, DEQ may not have expended any state funds for response activity to the property and then demanded reimbursement from the taxpayer. However, if the taxpayer has completed all response activity required by part 201 of the Natural Resources and Environmental Protection Act, 1994 PA 451, MCL 324.20101 to 324.20142, is in compliance with any deed restriction or administrative or judicial order related to the required response activity, and has reimbursed the state for all costs incurred by the state related to the required response activity, the taxpayer meets the criteria.

Site Improvement means privately financed, tangible improvements to a project site that increase the monetary and functional value of the project site. Site improvements include, but are not limited to, clearing land, adding sewer or water lines or other utilities, relocating existing utilities, landscaping, adding or removing soils, installing fences, lighting, walkways, driveways, or parking lots, trenching and pit excavation costs, and related improvements.