Michigan: $3 Billion in Business Subsidies
According to the Mackinac Center for Public Policy:
1. April 18, 2005 marked the 10th anniversary of The Michigan Economic Growth Authority (MEGA), a program established by Michigan government with the mission of spurring in-state job creation and business investment. The authority is the state of Michigan’s agent for selecting firms to receive Single Business Tax credits in return for creating new facilities and jobs in Michigan.
2. The incentives offered through MEGA packages total more than $3 billion since the beginning of the program (through 2005). These incentives include state tax credits, local abatements and other state and local inducements, such as job training and road improvements.
3. The largest local incentive was $165 million over 25 years to General Motors in June 2000. General Motors has been the direct beneficiary of six MEGA deals, by far the most of any corporation. Additional MEGA deals have been concluded with GM suppliers as part of an overall package benefiting GM.
Here's an example of one MEGA deal that provided GM with almost $100 million of incentives in 1999 ($127 million in today's dollars) to build a new Cadillac factory in Lansing, Michigan (thanks to Jim for the link).
Bottom Line: It's not just the foreign transplants that have received generous state subsidies for building new plants; Michigan has doled out $3 billion of taxpayer money to attract business investment, and GM and Ford have both been the recipients of Michigan taxpayers' largesse.