December 12, 2005

The Michigan state legislature passed a $600 million tax relief package for large manufacturers in the state, in part to help struggling domestic automakers. The four-year package aims to invigorate Michigan's economy with a 15 percent credit on taxes paid on industrial property, effective Jan. 1; a 100 percent tax credit on property in Michigan when companies transfer manufacturing or technology jobs to them from locations outside the state in 2007 and 2008; tax breaks for Michigan-based manufacturers that export goods; and a four-year extension of a tax abatement for Delphi Corp. and Visteon Inc. and Visteon that would have expired on Dec. 31. The legislation, which ends a year- long tax debate, is expected to cost the state $1 billion over five years. Gov. Jennifer Granholm says she will sign the bill.