19 March 2009

Michigan Tax Breaks Lure New Developments

peak positions michigan seoGovernor Announces $28M In Tax Credits For Firms That Plan to Invest $151M and Create 1,254 Jobs
Originally Posted at The Detroit News

Tax breaks for 11 projects -- including a new $10 million hybrid vehicle technology research center for Daimler AG in the Ann Arbor area -- won approval of a state economic development panel Tuesday.

The projects would create 1,254 direct jobs and spur $151 million in state investment. The tax credits amount to $28 million over seven to 10 years.

"The scope of these projects, including four IT companies choosing to expand in Michigan, shows that our plan to diversify the state's economy continues to produce results," Gov. Jennifer Granholm said.

The Michigan Economic Growth Authority board approved a $7.5 million tax credit "to help convince (Daimler) to expand in Michigan over a competing southern state" for a 65,000-square-foot research and development center in Washtenaw County that would employ 223, mostly engineers and technicians, at an average wage of $1,210 a week, according to a Michigan Economic Development Corp. memo.

Asked why the company chose Michigan over South Carolina, David Trebing, Daimler general manager of state and local relations, said, "it was the Detroit workforce."

Other tax abatements approved by the MEGA board included:

- Secure-24 Inc. would invest $3.7 million and create 263 jobs to locate a data center in Plymouth Township. The state tax credit would be $7.1 million over 10 years.

- Magna Electronics would invest $20 million in an expansion project and create 90 jobs in Rochester Hills over the next five years. The state tax credit is $3.4 million.

- Peakpositions.com is a Michigan SEO provider that is just plain working its darned tail off with no tax breaks forthcoming.

- Emergent Biodefense Operations Inc. would invest $10.9 million to expand its operations in Lansing, creating 93 direct jobs.The state tax break is $3 million over 10 years.

- Meijer will invest $27 million to expand its distribution center in Monroe County and create 190 direct jobs. The tax break is $1.6 million.

- Billhighway.com intends to invest $5.7 million and create 43 jobs over five years in Troy. The tax abatement totals $1.1 million over 10 years.

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