• Oct 28, 2010
The Michigan Economic Growth Authority has approved a series of tax incentives for Ford and Chrysler and expanded previously approved incentives for General Motors. Between a tax break engineered to help GM build a 900-job electric-vehicle battery facility in Warren and another to keep 4,000 people at work in the company's Renaissance Center headquarters, The General is looking at a considerable stack of incentives. According to The Detroit Free Press, the company has been granted a total of $757 million in potential tax breaks that hinge on the automaker keeping a total of 30,000 people at work.
But that's a drop in the bucket compared to what Ford and Chrysler walked away with. Ford was given a 15-year, $909 million credit. As part of that deal, FoMoCo has to retain 28,000 workers. Around $414 million of that tax break is geared toward helping Ford pump $850 million in to a slew of plants spread around Michigan.

Chrysler, meanwhile, took the incentive cake. The smallest of the big three was awarded $1.3 billion in incentives over 20 years geared at keeping 20,000 people at work. The tax breaks surround everything from upgrades to the company's Sterling Heights facility to work required to prepare its Dundee facility to manufacture the Fiat 1.4-liter Multiair four-cylinder.

All told, the tax breaks will reportedly allow the big three to invest a combined $2 billion in their respective Michigan facilities.

[Sources: The Detroit Free Press, The Detroit News]


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  • 22 Comments
      • 4 Years Ago
      I'm not a big fan of these special incentives. I think the general tax policy should be one that is competitive to regularly draw business. Often times, these businesses will stay only while they get the special discount and then bail after. Or at least threaten to bail so they get another round of incentives.

      • 4 Years Ago
      Now only if Obama could figure old that tax breaks/cuts equals jobs.....
      • 4 Years Ago
      Why is it the tax payers need to pay? they claim big profits,Yet they do not pay back what they owe the tax payers all they do is just move the loans around . We still give them money to move jobs out of the country
      • 4 Years Ago
      So for those that don't understand what Epyx is saying let me put it in terms you can understand. If you are working in America you pay taxes..that money then goes to the government and buys roads, services and schools. If nobody is working that money is not going to the government to buy roads, services and schools...so those things have budget shortfalls...in other words...NO MONEY. Then the state that is already not getting all of those tax dollars get to spend thousands of more dollars per month to those people not contributing to the tax base and there is more of a shortfall. I still to this day do not understand how people can't understand this simple concept. We need industry in America..we need to make more things here to have people work and buy other things for the economy to grow and prosper. I am glad for the tax breaks ...keep them coming ..but hold those corporations to their word of keeping or creating jobs.
      • 4 Years Ago
      Wow! Carrot rather than stick. Who'd have thought that would work?
      • 4 Years Ago
      Do you guys think that if Michigan's state legislature passed Right-to-work legislation it would improve the state or depress it further?

      Also, what services will lose from the tax incentives (edu, roads, bridges)?
      • 4 Years Ago
      Dayum!
      • 4 Years Ago
      I'm glad Michigan is finally being proactive in attracting industry. They seem to have wisened up to the fact that their workers don't have a God-given right to manufacture cars when it can be done so much cheaper in states like Texas, Tennessee, and Alabama. For too long the government of Michigan assumed car companies would pay the ever-increasing tax burden for the privilege of using Michigan workers. Well, we all saw how that worked out for them.

      The Rust Belt simply refused to play ball. They maintained their sky-high tax rates and militant unions and stood by and blamed Republicans as manufacturers fled the region in droves.
        • 4 Years Ago
        Reward failure with more tax money. That's the new American business principle.
      • 4 Years Ago
      Tax breaks = government bail out. These companies need to sink or swim that is part of the so greatly sharished Capitalism everyone is always praising.
        • 4 Years Ago
        So you want the government to decide who sinks or swims by give certain companies tax breaks and not others. Better yet should we just get rid of the anchor all together? Hell I need a tax break and I will promise to hire a garderner and housekeeper with the money.
        • 4 Years Ago
        Adding a 50 pound anchor (taxes) helps no-one swim.
      • 4 Years Ago
      Great news to hear about many thousands of jobs retained but how many NEW jobs?

        • 4 Years Ago
        @FordGTGuy

        A guy with common sense, it's a great thing nowadays with all the crazy stuff people say now. Good luck man with your job search!


        • 4 Years Ago
        "...build a 900-job electric-vehicle battery facility"
        • 4 Years Ago
        One step at a time man, I'm unemployed right now and wish there were more new jobs. However an economy cannot recover over night, I would rather they not over estimate themselves and end up laying off people all over again.

        This is really good news for the Detroit work force and their families though!
      • 4 Years Ago
      The tax breaks is what they will be spending .Yes your tax dollars I'd like them to pay back the money they owe to the tax payer that they so called borrowed
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