SKUBICK: Lawmakers Question Tax Credit Program for Potential GM Plant

LANSING, Mich. (WLNS) – Late last night, the Legislature finalized a business tax credit program that will affect GM’s decision to build an electric car battery plant in Delta Township.

Not everyone under the Capitol dome was happy with the billion dollar trade incentive package last night.

In fact, 33% of lawmakers voted no.

Democrat Cynthia Johnson called it “corporate welfare.”

Moreover, local Republican Senators Tom Barrett and Lana Theis also did not vote.

This Mackinac Center analysis rejects the use of your tax dollars for some businesses, but not all.

“The way to improve the business climate in the state is to do it for everyone, not for a handful of companies selected by our lawmakers,” said James Hohman.

Governor Whitmer, however, disagrees. The governor said the package “would allow Michigan to grow and attract billions of investments and tens of thousands of well-paying jobs.”

Small Business Association chief Brian Calley called him a “game changer.”

Business lobbyist Wendy Block says Michigan needs to compete with other states.

“What we’ve learned over the past decade is that if Michigan is to be competitive for the next generation of jobs, we have to be competitive with other states,” Block said.

Proponents of the proposal hope these tax incentives could convince GM to build its new electric battery plant in Delta Township.

Business leader John Walsh argues that if Michigan is to remain the automotive capital, it must:

“Keep all automotive excellence,” Walsh said.