The Michigan Economic Development Corp. (MEDC) is offeringCorp. an incentive package aimed at encouraging the struggling auto maker to invest more than $400 million in two transmission plants in Ypsilanti and Warren, MI.
If GM approves the plan, the investments – $282 million for Warren and $125 million for Ypsilanti – will retain some 13,790 jobs in the state, including 2,000 directly with the auto maker.
“GM’s continued commitment to investing in Michigan and its workforce demonstrates that we will not concede new automotive investment and jobs to any other state or nation,” Michigan Gov. Jennifer M. Granholm says.
As part of the offer, the MEDC approves a 20-year, $34.6 million single-business tax credit for the Ypsilanti facility and a $4.9 million tax abatement for the Warren plant.
Ypsilanti Township also will throw in a 12-year, $6.9 million tax abatement, while the city of Warren is considering a similar 12-year, $19.8 million abatement, MEDC says.
Overall, the MEDC expects the project to generate more than $16 billion in personal income for the state over the life of the tax credits.