Michigan, GM agree to cap tax credits, won't specify amount
LANSING, Mich. (AP) - Michigan and General Motors have agreed to cap the state's liability for lucrative tax credits but won't specify the amount, and the automaker has committed to $1 billion worth of capital investment in its home state.
The agreement was approved Tuesday by Michigan's economic development board. It's the latest deal to help Gov. Rick Snyder and future administrations better budget for billions in tax incentives authorized when Michigan was hemorrhaging jobs.
GM qualifies for an annual tax credit for retaining up to nearly 35,000 jobs, good through 2029. Under the agreement, the automaker can claim a maximum level of tax credits but the company refused to make that figure public, saying it is proprietary.
Michigan reached pacts earlier this year with Ford and Fiat Chrysler, which released their cap levels.