Lansing – Governor Gretchen Whitmer said on Wednesday that Michigan's incentives for Fiat Chrysler to create 6,500 additional jobs in the state would not require legislative approval.

She added that the state would use existing economic development programs to help the automaker's planned $ 4.5 billion expansion announced on Tuesday. The details will be provided at an upcoming meeting of the Michigan Strategic Fund, which is yet to be held, which gives businesses money in exchange for creating jobs and investments. , she said.

A memorandum of understanding between Detroit and Fiat Chrysler calls for national and local incentives "consistent with those offered to other large assembly plants" in the United States. One specifically mentioned option is to remove or reduce a state tax imposed on manufacturers' equipment.

Whitmer and the state's economic development agency have spoken little of the incentives that will be offered to the automaker, which, like other Michigan-based automakers, General Motors and Ford, is eligible for generous credits. state taxes until 2029.

Fiat Chrysler subtracts from its professional taxes some sums for each job added or kept in the state, with higher deductions for the highest-paying jobs. Under a 2015 agreement that caps the total value of the manufacturer's future credits after the public authorities have been caught off guard by larger than expected redemptions that have affected the budget, Fiat Chrysler may claim a growing number 25,000 jobs this year – up from 21,000 in 2018 – and 27,000 in 2029.

It is unclear whether the company or the state representatives will seek to restructure this agreement. State incentives are expected to disappear within the same 60-day period in which Detroit will assemble the lands so that Fiat Chrysler can reopen an engine plant in the city and convert another from the same complex into a future power plant. assembly.

Whitmer, a Democrat who took office last month, said about public incentives: "Everything will be public. My philosophy has always been that we need tools in our toolbox. We must also insist on accountability and transparency and gain an advantage for the people of Michigan. There is no doubt that the 6,500 jobs (which bring in $ 58,000 a year) will be a great boost for Michigan. "

A potential option for state economic development officials is the "Good Jobs" incentive program, which was enacted in 2017 to attract large-scale business development. Businesses can keep all or half of the income tax associated with new jobs for up to 10 years if the jobs pay at least the regional average.

Michigan Economic Development Corp. President and CEO Jeff Mason said last month that to date, about a quarter of the $ 200 million maximum job creation incentive, or $ 50 million dollars, had been authorized for three projects.

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