Group Warns Against Changing Tax Incentives

The state’s largest manufacturing association is warning state lawmakers about the idea of “reneging” on state-sponsored tax incentives.

Those incentives helped the auto industry during the last decade, but Mike Johnston of the Michigan Manufacturers Association noted to legislators Wednesday that the incentives also helped the state’s economy through job creation.

But the credits are also blamed by the governor for the recent hole in the state budget. The shortfall has since been filled through budget cuts approved by the legislature.

Some are saying the state should pressure the companies to renegotiate the contracts.

But Johnston says such a move would taint Michigan’s good will and business may not trust the state to deliver on its agreement. And reneging he says, “is terrible for economic development” in Michigan.