Governor Granholm Signs Manufacturing Tax Cuts to Protect Michigan Jobs
Governor Granholm Signs Manufacturing Tax Cuts to Protect Michigan Jobs
Governor Jennifer M. Granholm today signed legislation that will provide $600 million in tax cuts to Michigan's struggling manufacturers as part of her efforts to protect and create jobs in Michigan. The 8-bill package provides a number of incentives for Michigan companies to expand and locate jobs here.
"As our manufacturers struggle to adapt to a global economy, we must all do everything we can to help them compete and to protect Michigan jobs," said Granholm. "This legislation provides needed incentives for Michigan companies to invest in their facilities, create new jobs, and consolidate operations here."
The legislation signed by the Governor today will:
provide a 100 percent personal property tax credit for equipment directly related to jobs "insourced" from other states or countries in 2007 and 2008 by any manufacturing or high-tech business, creating an incentive to bring jobs to Michigan;
give struggling manufacturers an immediate 15 percent refundable personal property tax credit beginning in 2006;
adjust the sales apportionment factor to benefit Michigan-based companies by increasing the weighting of sales to 92.5 percent in 2006 and 2007, and 95 percent in 2008 and beyond; and,
provide tax cuts for Delphi to encourage the auto-supplier to consolidate workers in Michigan. The tax break would also apply to purchasers of former Visteon plants in Michigan.
In addition to pushing for passage of the legislation she signed today, the Governor has been working with bipartisan coalition of Michigan's Congressional delegation to direct the Bush Administration to help protect manufacturing jobs. The Governor has repeatedly called on the federal government to enforce trade policies, end currency manipulation by foreign countries, protect pension promises to our workers, and address the spiraling costs of health care.
"We will continue to take every possible action in Michigan to help our manufacturers compete and to protect jobs," Granholm said. "But these critical job providers need help from Washington, too."
http://www.michigan.gov/gov/0,1607,7-168-23442-132562--,00.html