Plan to Attract Auto Suppliers And Create Jobs

$250M In Tax Credits Will Encourage Suppliers To Consolidate In Michigan

March 26, 2009
By: MyBayCity Staff

State Representative Jeff Mayes (D-Bay City) today voted for a plan that encourages auto suppliers to consolidate their operations in Michigan, a move that will protect jobs for residents who work for auto suppliers and create more auto-supplier jobs.

"While southern Senators take ill-informed potshots at the struggles of our Michigan automakers, you don't hear them talking about the men and women of the auto supply industry that are bearing the brunt of the economic downturn," Mayes said.

"It's time we stood with these hard-working people who have seen their livelihoods dry up. This plan will not only allow Michigan suppliers to consolidate their operations and improve their financial situation, it will also attract companies looking for a friendly business climate. That means more good-paying jobs for Michigan workers."

As the auto industry goes through a massive reorganization nationwide, many auto suppliers are making decisions on where to consolidate their operations.

The plan that passed the House on a vote of 106-3 will allow auto suppliers to "front-load" any job retention credits they may qualify for through the Michigan Economic Growth Authority (MEGA). This new $250 million incentive would allow auto suppliers to claim the value of future MEGA credits in a single tax year ending before Jan. 1, 2011, essentially granting up to 20 years' worth of tax credits up front to encourage auto suppliers to keep their operations running in Michigan and make the state an ideal location for consolidating those operations.

"We must take swift action to ensure that we don't see more Michigan jobs leaving for other states or countries," Mayes said. "With these incentives, we can ensure that Michigan remains the prime destination for auto suppliers throughout the world. I urge the Senate to move quickly on this important plan."