Michigan woos seven companies with tax credits

Mark Hornbeck / Detroit News Lansing Bureau

Lansing -- A state panel handed out $187 million in long-term tax credits today to woo seven companies to expand or locate in Michigan.

The projects receiving Michigan Economic Growth Authority credits, along with three brownfield redevelopment projects, will lead to $255 million in investment and 1,507 direct jobs over the next several years -- if the companies follow through on promises.

"All of these are game-changers," Gov. Jennifer Granholm said.

Greg Main, CEO of the Michigan Economic Development Corp., said the projects will help diversify Michigan's limping economy.

The projects include:

• Ohio Module Manufacturing Co. will invest $21.4 million in a facility in Detroit to make products for Chrysler's Jefferson plant. The project will create 200 direct jobs. The tax credit is valued at $1.8 million over five years.

• Strategic Staffing Solutions, a Detroit-based information technology consulting company, will put $7.3 million into a new IT center, creating 437 direct jobs. The tax break is valued at $3.8 million over five years.

• Auto-Owners Insurance will invest $105 million into an expansion of its headquarters in Delta Township near Lansing. The project is intended to create 800 direct jobs and the company will get a $23.1 million tax break over 10 years.

• Johnson Controls-Saft Advanced Power Solutions LLC, based in Holland, was approved for a $20 million credit over three years to support the manufacture of battery packs using lithium-ion technology. The company received a Michigan Business Tax Credit of up to $100 million over four years and a high-tech MEGA credit last April to build its advanced-battery manufacturing factory. Overall, Johnson Controls intends to invest $220 million and create as many as 1,096 jobs.

• Williams International Co., a maker of small gas turbine engines, plans to invest $12 million to upgrade its facility in Commerce Township. The renovation will retain 72 direct jobs. Its tax credit is $1.4 million over five years.

• Clairvoyant Energy Solar Panel Manufacturing Inc. and Xtreme Power Inc. received credits for a previously announced investment at the former Ford Wixom assembly plant. Clairvoyant will invest $856 million into its solar panel manufacturing plant, creating 750 jobs over five years. The Michigan Economic Growth Authority board approved a tax credit of $31.2 million over 15 years. Xtreme Power plans to create 2,500 direct jobs in battery cell manufacturing. The tax credit is valued at $106 million over 20 years.

Among the brownfield projects is an $820,000 historic renovation of a former fire station in downtown Mount Clemens. It will be supported by $189,600 in state and local tax capture.

mhornbeck@detnews.com (313) 222-2470