A report published earlier this week put the spotlight on little-known business tax refunds that GM has been receiving from the state of Michigan since 2009, thanks to a deal it struck with the quasi-public Michigan Economic Development Corp (MEDC). Now the total value of these tax breaks have been revealed by The Detroit Free Press after a ruling from the Michigan Supreme Court lifted the lid on the secretive agreement.
The newspaper reports GM has received $3.8 billion in tax credit kickbacks from the state of Michigan since it filed for bankruptcy in 2009. A previous ruling made under Gov. Rick Snyder allowed GM to keep the total value of the tax credits a secret, however a recent Michigan Supreme Court ruling tied to a public records request has now made the information freely available.
Elizabeth Winter, a senior communications manager at GM, told The Detroit Free Press that the so-called Michigan Economic Growth Authority (MEGA) tax kickbacks are intended to drive job creation in the state.
“The Michigan Economic Growth Authority (MEGA) Agreement is an incredibly successful program that encouraged GM to build and grow in Michigan,” Winter said in an emailed statement. “It provides companies a tax credit tied to job creation in the state.”
“Today General Motors employs more than 52,000 workers in Michigan across 31 facilities,” Winter said. “We are proud to bring these jobs and investment to our home state and remain fully committed to executing our plans here.”