LANSING – The Michigan House of Representatives today passed 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.
"With the American auto industry in crisis, auto suppliers are getting squeezed more and more each day," said House Speaker Andy Dillon (D-Redford Township). "These suppliers are looking to consolidate their businesses, and we must take action to make sure that Michigan remains the hub for this industry. We have the skilled workforce and the facilities needed to attract these companies. This plan will sweeten the pot by offering returnable tax credits as a financial incentive."
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. The plan is designed to pay for itself.
"We can't stand by and watch the auto suppliers take their operations to other states or countries," said State Representative Richard LeBlanc (D-Westland), who sponsored the plan. "Creating the right kind of incentives to attract auto suppliers to Michigan will create the jobs we need for our workers and protect the jobs we already have. Michigan is the state that put the world on wheels – this plan will help protect that auto legacy well into the 21st century."