Our Republican legislature- bad for business, bad for Michigan. Be sure and thank Dick and Brooks for this, too.
AP) — These four companies were told Tuesday by the Michigan Economic Growth Authority Board that "the MEGA Board would look favorably upon a tax abatement" for them. The attorney general's office said the MEGA Board can't promise tax credits because the credits won't start until after 2007, and the state's main corporate tax ends in 2007. A replacement to the Single Business Tax has not been crafted.
• Grid4 Communications Inc. plans to invest $500,000 to expand its Troy headquarters. It tentatively would get a business tax credit worth $501,000 over six years.
• Hi-Lex Controls Inc. will invest $26.8 million to expand its auto supply operations in Hudson and Litchfield. It tentatively would get a business tax credit valued at $1.2 million over seven years.
•Siemens Water Technologies Corp. plans to invest nearly $3 million in its Holland facility. It tentatively would get a business tax credit valued at $1.1 million over seven years.
• The Tech Group Grand Rapids plans to invest $12.4 million to upgrade its custom injection molding facility in Walker. It tentatively would get a business tax credit valued at more than $1.8 million over seven years.
Leaving companies in limbo. Maybe they can "tentatively" create jobs, too. Hi-Lex doesn't seem to concerned, but notice the rest of them use the phrase "plans to invest". From the other AP story-
John Flack, finance director for Hi-Lex Controls Inc., one of the companies granted an abatement Tuesday, said he isn't worried the company won't get the abatements after spending $26.8 million to expand its auto supply business in Michigan.
"There's no way the state can govern without a business tax of some sort," he said. "We're not concerned about that at all."
But it might be harder to lure new companies at a time when investment in Michigan is critical.
James Epolito, head of the Michigan Economic Development Corp. that oversees the MEGA program, said it's tougher to lure companies now that he can't promise what the tax abatements will look like.
"The other state and countries are putting firm offers out," he said. "I can't guarantee."
Further proof that you should fire your local Republican legislator this November.