Tagged: brownfield

The new budget deal struck this week between Governor Rick Snyder and Republican legislative leaders cuts the amount of money for redeveloping abandoned factories and preserving historic buildings.

The governor says the state won’t need to rely so much on targeted incentives in the future.

The new budget will zero out brownfield and historic preservation tax credits, and replace them with a new fund to offer economic development grants.

$50 million will be set aside for brownfields and historic preservation.

That’s $15 to $20 million dollars less than the state targets now.

But Governor Snyder says the state can do a better job of choosing projects "and hopefully make those dollars go farther than they are today."

Mark Morante, with the Michigan Economic Development Corporation, says the state will target only projects most likely to be completed.

In the past, many tax credits that were awarded went unclaimed. He also says the state won’t need to rely on incentives as much because tax changes will bring down the cost of doing business.

"With this six percent corporate income tax and roughly an 80 percent cut in corporate taxes in general, our job will be a little easier on that side of the table, so we will probably need less incentives," said Morante. 

Those tax reforms have been criticized as a tax shift onto individuals. But the governor and his Republican allies in the Legislature say that will be worth it if it creates new jobs.

State tax breaks worth $10 million are leading to an investment in GM's Warren Tech Center.

Warren Mayor Jim Fouts indicated an announcement like this would be coming last month.

From the Detroit News:

General Motors Co. won $10 million in tax incentives from the state today to build a new information technology facility at its Warren Tech Center.

The $130 million project — expected to create about 25 permanent jobs — will add on to the Cadillac Building on the campus and occupy about 30-acres of land located along Van Dyke Avenue. The new jobs will pay an average of $44 an hour, according to the Michigan Economic Development Corporation.

The brownfield tax credits valued at $10 million were approved this morning by the Michigan Economic Growth Authority board.

The state brownfield tax credits involved in this deal won't be around for long. In Governor Snyder tax overhaul plan, approved by state legislators, the tax credits will be replaced with a system that will grant redevelopment money up front.

A state Senate committee opens hearings tomorrow on Governor Rick Snyder’s tax reform proposals.

Altogether, two dozen tax breaks could disappear if the governor’s plan is adopted.

Ending the tax exemption for pensions has gotten a lot of attention, but the plan would also largely eliminate the use of tax breaks that encourage the re-use of old factories and historic buildings.

The state of Michigan will soon increase assistance to redevelop old industrial sites. 

The Associated Press reports:

Redevelopment projects in Detroit, Flint, Grand Rapids, Hamtramck and Lansing are getting a boost with statetax incentives. 

Gov. Jennifer Granholm said Tuesday the projects are in line for brownfield redevelopment assistance from the state. Granholm, who leaves office at the end of this year, made the announcement at her last scheduled meeting with the Michigan Economic Growth Authority board.