Tuesday, May 17, 2011

Yea! More MEGA Tax Credits for Business!

I'm just being a brat now.

Feb. 17th, 2011.

In case there was any question, Gov. Rick Snyder made it plain today: Business tax incentives as Michigan knows them will be gone.

With elimination of the Michigan Business Tax and a new 6 percent corporate income tax in place, Snyder proposes eliminating tax credits for brownfield redevelopment, the Michigan Economic Growth Authority program, alternative energy, energy, film, renaissance zones and others.

Except when they aren't. Budget approved, tax changes supposedly made, and here is the list for the Detroit area credits in the DNews today:

- A $514,000 tax incentive for Summit Health Inc. to create 252 jobs over three years by locating its headquarters and a research and development center in Novi.

-- A nearly $300,000 tax incentive over three years for Tianhai Electric North America — a subsidiary of China Auto Electrics Group Ltd. — to create 202 jobs for a world headquarters to manage its global wire harness business for non-Chinese carmakers.

-- A $ 1 million tax credit over five years for Kenersys Americas LLC, the U.S. unit of a German wind turbine maker, which projects to create up to 160 jobs in a new sales and headquarters operation in Troy.

Also under review are three brownfield redevelopment projects — two in Detroit and one in Warren.

The projects, if approved, would generate nearly $187 million in new investment and create up to 911 jobs, according to an MEDC statement.

Cool, turbine maker HQ. And a brownfield credit for Lansing:

State officials are meeting this morning to consider more than $1.5 million in tax incentives for a downtown East Lansing project.

The project, called St. Anne Redevelopment, includes demolishing two commercial buildings at 213-217 Ann St. and replacing them with a single, four-story residential and commercial building.

There may be more to this MEDC MEGA release, this was just for starters. Like I said the other day, I believe business incentives will continue - I just find it amazing that this hasn't been questioned by anyone yet. The guy said they would be gone, and here they are, merrily passing out the candy like usual. But hey, if it gets us turbine makers, I'm all for it.

Media, I know you guys are busy, but care to comment?