House Democrats are working to ensure that auto suppliers choose Michigan as the place to consolidate their operations as the auto industry continues to cut production amid a sputtering economy.
"The American auto industry is in crisis mode and our auto suppliers are feeling the pressure," said House Speaker Andy Dillon (Redford Township). "As these suppliers look at consolidation, we need to do all we can to ensure our state remains the central player in the automotive industry. Michigan has the skilled workers and the facilities needed to retain and attract these companies."
To make Michigan a top destination for auto suppliers and the jobs they provide, House Democrats passed a plan in March that makes $250 million in tax incentives available. The plan allows auto suppliers to "front-load" any job retention credits they qualify for through the Michigan Economic Growth Authority (MEGA).
Suppliers can claim the value of future MEGA credits in a single tax year ending before Jan. 1, 2011, essentially receiving up to 20 years' worth of tax credits up front. By making Michigan the best place for auto suppliers to do business, House Democrats are ensuring that the industry that built the middle class will play a key role in our economy for years to come.
"We cannot sit idly by and let these auto suppliers move out of Michigan," said State Representative Richard LeBlanc (Westland), who sponsored the plan. "The right kind of incentives will protect the automotive jobs we have while creating the new jobs our workers need."