LANSING – State Representatives Brandon Dillon (D-Grand Rapids) and Gretchen Driskell (D-Saline) hailed the announcement Monday that Ford Motor Co. has agreed to limit its MEGA tax credits to $2.3 billion and invest up to $3.1 billion in Michigan in order to shore up the state’s revenues and create fiscal stability over the coming decades. The announcement followed negotiations between the automaker and the state after it was announced earlier this year that Michigan faces a $9.4 billion shortfall because of runaway MEGA tax credits.
“This agreement proves it’s possible for a good, corporate citizen such as Ford to come back to the bargaining table and reach a reasonable agreement with the state,” Dillon said. “Ford did the right thing and recognized that as a company that has always called Michigan its home, it makes sense to limit its tax credits so that our state can better fund schools and road repairs. I’m grateful for this decision and their future investment, and hopeful that other corporations will follow suit.”
The volume of tax credits and the uncertainty of when they might be claimed had threatened to hamper Michigan’s budgetary process for decades into the future. House Democrats called for corporations to return in good faith to renegotiate the tax credits for the state – a move that some alarmists called impossible and dishonorable.
“Ford’s bold step shows that smart corporations understand their success is tied into the wellbeing of their community,” Driskell said. “Corporations can’t be separated from the places where they’re located or the people who work for them. Only when the business community and families work together will Michigan overcome the challenges it faces.”