Ford agrees to invest $3.1B to get max Michigan tax credits

Source: AP

By DAVID EGGERT

LANSING, Mich. (AP) — Ford Motor Co. would have to invest $3.1 billion in Michigan facilities over the next 10 years to qualify for its maximum tax credits under a deal announced Monday that limits the state's liability for incentives issued to keep auto jobs in the state.

The Michigan Strategic Fund approved the amended tax agreement with Ford, as Gov. Rick Snyder tries to get a handle on $9.5 billion in business tax credits for which the state is liable into 2031.

Many of those credits were issued during the recession, primarily for promises by Detroit's major automakers — Ford, General Motors and Chrysler — to keep jobs in the state. Snyder and lawmakers had to make budget cuts months ago after being caught off guard by larger-than-expected tax credit redemptions.

State economic development officials said the new deal gives Ford a strong incentive to maintain and expand its Michigan presence, while the state gets better predictability on the size and timing of credits being claimed annually.

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Read more: http://bigstory.ap.org/article/035b4660f21d4d4a8508db36f3dd28fd/ford-agrees-invest-31b-get-max-michigan-tax-credits