Governor urges House to OK tax incentives

FOXCONN

LANSING, Mich. — Gov. Rick Snyder urged the Republican-led Michigan House on Friday to pass economic development tax incentives when it meets in July, saying there is still time to lure a Taiwanese electronics giant to the state despite the cancellation of a vote on the legislation.

Foxconn, which plans to locate a display panel factory in the U.S. that could cost up to $7 billion, will announce investment plans by early August for at least three states, Chairman Terry Gou said Thursday. He mentioned Michigan, Ohio, Pennsylvania, Illinois, Wisconsin, Indiana and Texas as manufacturing states with which Foxconn hopes to work.

House Speaker Tom Leonard called off a vote on the Senate-approved bills Tuesday night and adjourned until July 12, citing concerns that the Republican governor had cut a deal with House Democrats that would “undermine” other GOP priorities. He did not elaborate.

Snyder, who is on a weeklong trade trip in Europe, told The Associated Press that the proposed tax incentives for large-scale business expansions are “relatively straightforward” and are about “more and better jobs for Michigan.” He traveled to Japan in early June to entice Foxconn, which assembles smartphones and other devices for Apple, Sony, BlackBerry and other brands — mostly in China.

Asked about Foxconn’s decision-making process, Snyder said in a phone interview from Milan, Italy: “We’re later in that timeframe but there still is time. ... If we get something done in July, we can still hit that (August) date.”

After Snyder took office, Michigan in 2012 stopped issuing new tax credits for companies to add or retain jobs as part of an overhaul that slashed business taxes overall. The state instead awards a smaller pot of cash grants and loans for economic development.