Michigan governor signs bills to aid manufacturers
CHICAGO, Dec 20 (Reuters) - Michigan Gov. Jennifer Granholm
sent a holiday gift to the state's ailing manufacturing sector
on Tuesday, signing into law bills that will give them about
$600 million in tax relief over four years.
"This legislation provides needed incentives for Michigan
companies to invest in their facilities, create new jobs and
consolidate operations here," the Democratic governor said in a
statement.
The bill package, which passed the Republican-controlled
legislature last week, creates a 15 percent personal property
tax credit beginning in 2006 and a 100 percent new investment
credit on property directly related to jobs transferred to
Michigan in 2007 and 2008. Michigan-based companies that export
goods will also get a tax advantage with a change in the
state's sales tax apportionment factor.
Auto suppliers Delphi Corp. , and Visteon Corp.
, will have their current tax status maintained, allowing
them to avoid a massive tax hike at the end of this year.
Major Michigan-based manufacturers, including Delphi, which
filed for bankruptcy protection in October, and auto giant
General Motors Corp. have announced job cuts as they
attempt to restructure their operations.
Michigan, meanwhile, has been struggling with eroding tax
revenue and high unemployment rates.
House Speaker Craig DeRoche said Michigan was ready to help
automotive manufacturers retain and create new jobs in the
state. He added in a statement that the bill package was a
strong first step in making Michigan more attractive for job
creation.
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