Governor defends state tax credits

Gov. Jennifer Granholm said Tuesday that gubernatorial candidates are misguided if they call for eliminating or reducing state tax credits used to attract businesses to Michigan.

"Those who say we should not go after these companies with tax incentives would have us unilaterally disarm," Granholm said.

She also said Michigan's business tax climate has improved significantly since she became governor, based on state rankings by the Tax Foundation, a nonprofit watchdog group based in Washington.

Granholm spoke as the Michigan Economic Development Corp. (MEDC) granted $41 million in state tax credits for 15 corporate expansions totaling $177.5 million. "Anyone on either side who says we should be eliminating the Economic Development Corp. or reducing our incentives does not understand how things are playing out globally, that we must compete if we're going to keep these job providers here," Granholm said.

She repeated her call for a sales tax on services -- a proposal that she has acknowledged is dead in the Legislature for this year -- and for eliminating the Michigan Business Tax surcharge.
Help for projects in metro Detroit

Nine corporate expansions in metro Detroit were among 15 state projects granted state tax breaks.

Detroit Diesel's $194-million plan to upgrade its Redford Township plant received a tax credit worth up to $7 million, based on retaining 1,900 employees.

A $23.4-million upgrade of the ArvinMeritor Heavy Vehicle Systems headquarters in Troy tops a list of four Troy projects that received tax credits. The company manufactures drivetrain components for specialty and commercial vehicles. It was granted a tax credit worth up to $2.2 million over seven years to hire 125 new employees.

Other Troy companies given tax breaks were:

• Inteva Products, which received a tax credit worth $263,055 over five years for a $4.9-million expansion of its headquarters and technical center, with 35 new jobs.
• Genesis, a provider of business services, which received a tax credit up to $2.1 million for a $2.2-million plan for a new development center. The company said it will add 296 jobs.
• Creative Breakthroughs, which provides computer system security and won a $1-million tax break for a $780,000 expansion that it said will create 100 jobs.

In Plymouth Township, Delphinus Medical Technologies received a tax credit worth $779,118 over five years to build a facility to produce ultrasound imaging equipment to detect breast cancer. An Auburn Hills company, YouSource Management Group will spend $1.5 million to create up to 27 jobs for its employment services. It received a tax credit worth $206,943 over five years.

In Warren, Waltonen Engineering was granted a $538,770 tax break over four years for a $9-million expansion that will create 145 jobs directly at the company, which provides engineering and design services to the aerospace, automotive, defense and medical industries. Royal Oak Medical Devices of Oxford in Oakland County received a $195,181 tax credit to invest $2.6 million to produce medical devices. The expansion is expected to create 26 jobs over five years.

Video of the press conference with CBI's CEO STeve Barone standing behind Gov. Granholm

Read the full article at freep.com

---