Tagged: tax incentives

Governor Rick Snyder was on hand to help celebrate as the Michigan Strategic Fund approved state-paid incentives to 14 new business projects.     

The governor said lower taxes, fewer regulations, and a skilled workforce should make incentives less necessary in the future. But he said state assistance still has to be part of the mix. 

U.S. Senator Debbie Stabenow will introduce a bill next week to prevent companies from getting tax write-offs for moving overseas.

Currently businesses can write off moving expenses on their taxes if they’re moving within or out of the country.  But no such break exists for businesses moving into the U.S.

“That makes absolutely no sense,” Stabenow said at a press conference Monday at Grand Valley State University.

Tax incentives have become the weapon of choice among states battling for new business investments. Niala Boodhoo reported in December that offering incentives has become a sort of strategy game for Midwest states hoping to one-up each other as everyone fights to grow jobs. But, as Niala reported, these are games with millions of dollars in tax breaks and thousands of jobs on the line.

Biden visited a Grand Rapids Public High School back in October to promote the President’s jobs bill. Biden returns this week, this time he’s expected to talk to workers at a manufacturing plant about the administration’s tax plan that’s supposed to boost American manufacturing.

Biden will visit American Seating Company in Grand Rapids on Wednesday. American Seating Company has been making seats for tour busses, trains, and big stadiums for about 125 years. Dave McLaughlin is Vice President and General Sales Manager of Transportation Products Group at American Seating. He’s been working there for 27 years. He says the company is trying not to view Biden’s visit as simply a political event.

“I’m sure there are people that are looking at it as a political event,” McLaughlin said, “We really need help as a nation in rebuilding our manufacturing infrastructure.”

The company employs 500, mostly unionized workers. Most are in Grand Rapids, but all in the United States. McLaughlin says about 75-percent of the company’s goods and services are sourced from companies based in Michigan, Ohio or Indiana.

“We just like to do things here,” McLaughlin said simply. “Now having said that we clearly are in the minority.” He says labor costs are the biggest challenge in staying in the U.S.

So if labor costs are the challenge, what can the U.S. government help manufacturers out with?

1. Tax incentives: “Certainly a way of mitigating that fact of life could be through tax breaks of one sort or another,” McLaughlin said.
2. Strengthening the Buy America content provisions: “They could raise that threshold to the point where it’s more difficult for offshore organizations to meet,” McLaughlin said.
3. Have local, state, national projects buy American made products: “It seems ridiculous to me to see those dollars go offshore when quite often they don’t get reinvested back into the United States,” McLaughlin said.
   

Three Detroit businesses earlier this year began to offer up to $25,000 to encourage their employees to buy a place to live in Midtown Detroit. But the "Live Midtown" incentives have created a new kind of housing crisis in the city: a housing shortage. 

Austin Black is a realtor with City Living Detroit in midtown. He says in 2007 - 2008, the area was flush with unsold units. But he says now many of his clients have become frustrated looking for housing in the area.

LANSING, Mich. (AP) - Democrats in the Michigan Legislature say they want to revive tax incentives specifically set aside for advanced battery manufacturers.

The industry-specific tax credits are among those scheduled to be phased out under tax policy changes approved by the Republican-led Michigan Legislature and Gov. Rick Snyder.

Democrats say Monday they'll support bills that would continue the industry-specific credits for battery production, facility construction and related activities.

The Democratic plan also would include tax credits for buying electric vehicles and charging stations.

Michigan's tax credit program and federal assistance have helped several battery manufacturers get started in the state. Credits that already have been granted will be honored. But Snyder and Republicans say they don't want to pick winners and losers with industry-specific tax credit programs.