LANSING – Legislation that auto executives say could drive significant high-tech investment sailed through the Michigan House Commerce Committee Tuesday.
The two bills, HB 6034 and HB 6035, would expand the eligibility pool for the Michigan Economic Growth Authority Act (MEGA) by including high-tech facilities of traditional businesses and companies that don’t directly employ those working for them. MEGA provides single business tax credits to businesses that create or maintain jobs in tech sectors.
For example, Ford Motor Company is expected to consolidate their testing facilities in Michigan and Arizona. Jim Berger, manager for Ford’s Michigan proving ground (MPG) said there are two potential scenarios.
“Our proving ground could be closed and moved to Yuca, Arizona, and all the jobs would go with it,” Berger said. The other option, he said, would be to consolidate the Arizona facility into the Michigan one.
“This would mean new inventory – up to $40 million and 100 new jobs. Most importantly, it would mean the preservation of jobs here,” Berger said.
Rep. Phil Pavlov (R-St. Clair) asked Mr. Berger if Ford could duplicate the unique Michigan environment in their Arizona facility. Berger replied that Ford has access to hot weather testing in Arizona and could duplicate the Michigan environment with technological assistance.
When asked how the decision looked from a horse-race perspective, Berger said the decision was “neck and neck and coming to the finish line.” He said that although no decision has been reached, he expects it to come in the “first half of the year.”
The legislation would have an indeterminate effect on the state budget, according to the House legislative analysis, though it states the “fiscal impact could range from none in a given year to a significant loss of Michigan Single business tax revenue.”
Representatives did not address what would happen to the MEGA program and the incentive package if the single business tax were revoked. Both bills passed 17-0.
This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com
