The Detroit News reports that the Michigan Economic Growth Authority approved $2.6 million in additional tax breaks for General Motors as an incentive to keep at least 2,500 workers at the Renaissance Center.
The most high-profile project addressed by the MEGA board Tuesday involved additional tax incentives to help GM maintain its world headquarters at the Renaissance Center.
The MEGA board Tuesday approved extending a tax credit to GM for 2,500 employees at the RenCen. There are about 4,000 workers there now but GM is reshuffling workers under a broad facilities review and it is unclear how many workers would remain in Detroit. The tax break would be worth $2.6 million annually if GM keeps 2,500 employees at the RenCen.
Gov. Jennifer Granholm said it was “incredibly important” from an economic and symbolic standpoint that GM keep its world headquarters at the RenCen.
“It’s a symbol. For (GM) to abandon Detroit would send a terrible message,” she said. “We hope as many employees as possible stay at the Renaissance Center.”
At some point, the state must address the use of tax breaks as an incentive to investment at a time of flagging tax revenue. As we reported a week ago, the state last year offered $6.3 billion more in business tax breaks than it collected in taxes.