MEDC tax breaks equal $804M of new investment in Michigan

Thursday, March 4, 2010 | Source: metromode

Metro Detroit continues to take more than its fair share of state tax credits to help grow local businesses.

Southeast Michigan companies have taken in $25 million worth of state tax credits awarded through the Michigan Economic Development Corp to leverage $107.4 million worth of investment. That means an expectation of creating 1,594 jobs locally. The whole announcement means 5,749 jobs and more than $804 million in new investment in Michigan.

The pick of the local litter is the wooing of Techno SemiChem to move its headquarters to Northville instead of South Korea. That $31.1 million investment will mean that 279 people will be conducting research and development and pilot production efforts to produce electrolyte for advanced lithium ion battery cells. The state gave $3.2 million in tax breaks over seven years to broker the deal.

Another new economy coup is to convince CIBER to spend $8 million to establish a development center in Southfield instead of in Florida. The IT firm plans to service its clients in the government, finance, and manufacturing sectors with 700 new jobs. The state is giving $10.1 million in tax credits over seven years, and Southfield is chipping in another $1.2 million in tax abatements.

This latest announcement also includes deals for some of the region's old economy manufacturing sectors. Advanced Integrated Tooling Solutions is investing $13.3 million to manufacture equipment for commercial, retail, and military aircraft in Chesterfield Township. It's a move that will create 275 jobs from a tax credit valued at $3.2 million. ALTe, an automotive supplier of battery powertrain systems, will spend $51.3 million to open an assembly facility in Auburn Hills, creating 305 jobs thanks to an $8.4 million tax credit over eight years. Katcon USA, an automotive supplier of catalytic converters and exhaust systems, will also sink $3.7 million into a new technical center in Auburn Hills. That means 35 new jobs from a $534,633 tax credit.

Source: Michigan Economic Development Corp
Writer: Jon Zemke