Tagged: tax incentives

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.

Leading auto consulting firms are lowering their forecasts for U.S. auto sales in 2011. 

But it is unlikely to send automakers into a panic.

Some observers say the lower volume of sales means the U.S. is ripe for an incentives war among car companies.  

But Anthony Pratt with the auto consulting group R. L. Polk doesn’t see it happening.   He says a lot of the triggers that set off incentives wars in the past are missing. 

For one thing, U.S. car companies are making money at the lower volume of sales. 

Several Detroit businesses are paying their employees to move to the city as part of a new incentive program called "Live Downtown."

Employees can get $20,000 dollars toward the purchase of a new home. Those who rent will get up to $3,500 for two years. Even employees who already live in the city can get money to make home improvements.

Here's a list of the 5 companies behind the new "Live Downtown" program:

Together the projects will generate up to $602 million in new investments and create close to 2,000 new jobs.

By far the biggest project approved by the board this month is in Charlotte. Spartan Motors Chassis designs and manufactures a variety of special products for vehicles. They’re expected to add 450 new jobs along with an expanded facility.

George Bosnjak manages business development at The Right Place. It’s an economic development group in West Michigan. He helped two companies expanding in Grand Rapids get the tax breaks. Atomic Object LLC will expand its current location over a site in California. They expect to launch two new programs that’ll add 30 high tech software design jobs. Knape & Vogt Manufacturing Company makes all kinds of storage related components in Grand Rapids. They purchased a company in Illinois and will move production to Michigan, creating more than 120 new jobs.  

Bosnjak is optimistic about industry growth in West Michigan.

 “We really see a positive trend across all sectors, certainly nothing where it’ll turn around and change what’s happened over the last three years overnight but I feel that our economy and companies here are certainly moving in the right direction.”

However, Governor Rick Snyder is proposing to eliminate these and many other tax breaks. Bosnjak says they’re playing it by ear.

“I don’t think anyone really knows exactly what the programs will be and what the changes will be and how it’ll affect companies. But we’ll certainly deal with the tools that we have and make the best and do the best job that we can.

Snyder says the incentives inherently pick winners and losers when he says the state needs to create a simple and fair tax structure so all businesses are on an even playing field.

Republican state senator Rick Jones says Michigan’s film tax credit might need to be trimmed, but he doesn’t think it should be eliminated. 

Governor Rick Snyder has said he’s going to put Michigan’s generous film tax credit policy under the microscope.

Movie companies can get up to a 42 percent tax credit if they film here.

But State Sen. Rick Jones says movies made in Michigan can be good for the state, because a hit can bring residual money into a community:

A good example would be "Somewhere in Time" with Christopher Reeve." We still have people traveling to Mackinac Island to see where that movie was made. There are still souvenirs sold, and it increases tourism.

Jones says his position has nothing to do with the possibility that the next Batman movie may be shot in his hometown of Grand Ledge.

Another movie, “Red  Dawn,” was also filmed in  Grand Ledge  and is awaiting release.