In 1997, Michigan became the first state in the nation to offer tax-free Renaissance Zones to help spur new jobs and investments. These designated areas are free of most state and local taxes for up to 15 years. So far, the innovative zones have proven quite successful and are credited with luring 128 companies to the state, as well as creating 3,663 new jobs and over $330 million in new investments. However, these zones were not previously applicable to the food and agriculture industry.

   To help Michigan's struggling agriculture industry, which employs 500,000 persons related to farming and food processing, a unique twist was put on the original Renaissance Zone program with the creation of Agricultural Processing Renaissance Zones (APRZ) in 2000. These new APRZs are exempt from all state and local taxes just like the original Renaissance Zones for qualified agriculture processors who want to expand or begin operations in Michigan. Up to 20 such zones will be allowed anywhere in the state. They are designed to help keep Michigan's raw commodities in the state and improve markets and profitability for Michigan farmers.