HOLLAND, Mich. – A tax abatement program in Michigan is being used again to add strength to the state’s agriculture community.

Agricultural Processing Renaissance Zones (APRZs) offer tax breaks to new or expanding companies primarily using raw goods from farmers to make food products. APRZs are also a tool to help keep companies from leaving for better incentive packages elsewhere.

In 2018, there were 10 active APRZs in the state for 11 companies representing just more than $1.2 billion in new investment since 2006, according to the Michigan Strategic Fund (MSF).

MSF and the Michigan Department of Agriculture & Rural Development (MDARD) are involved in deciding applications for an APRZ.

The latest recipient is Request Foods, Inc., one of the largest family-owned and operated co-manufacturing food companies in the nation. The firm makes food products for retail, club store and food service customers under their national brands and private labels.

According to MSF officials, the Holland-based firm will save $11 million in taxes from a $205 million expansion projected to create nearly 200 jobs. About 900 people already work at one of the largest employers in the western part of the state with more than 600,000 square feet of manufacturing space.

“While we received enticing officers to expand in other states, our commitment to Michigan, coupled with our desire to ensure Holland is recognized as an area of choice to live and work, precipitated our decision to expand locally,” said Request Foods Chief Financial Officer Menaka Abel.

MDARD Director Gary McDowell said the expansion illustrates that Michigan is a “food and agriculture powerhouse.”

He also said the significant investment in food processing will serve “our production agriculture value chains for decades to come while bringing the latest in food manufacturing technology to the state.”

According to company officials, the project involves additional manufacturing capacity, a new cold storage warehouse, construction of a Ready to Eat plant along with expansion and upgrading of its wastewater pre-treatment plant.

In 2011, Request Foods used tax abatement under the same program on a $114 million expansion producing more than 100 new jobs, MSF officials said.

Initially, companies designated an APRZ don’t have to pay most state and local taxes on real or personal property. The discounts are gradually reduced until full payment is due once the APRZ expires after a specified number of years, MSF officials said.

Under the program, an agriculture processing facility is defined as a facility that transforms, packages, sorts or grades livestock or livestock products, agricultural commodities or plants and plant products into goods for consumption and non-food use, according to MSF.

Other state-funded incentives for the company included a $2 million Michigan Business Development Program performance-based grant and $6.9 million in Community Development Block Grant funds for things like machinery and equipment.

Products from Request Foods include custom entrees, side dishes, heat and serve portions and other varieties.

According to the company’s website, Request Foods was started in 1990 by Jack De Witt. De Witt was instrumental in the success of Bil Mar Foods, a major turkey processor started by his father and uncle in 1938 with a small flock.

His son, Steve De Witt, joined the company in 1996 and took over as president in 2017.