State Tax Credits News Briefs - October 2010

Friday, October 1, 2010

The Michigan Economic Development Corporation (MEDC) has approved incentives for 12 business projects and one brownfield development project that are expected to bring more than 4,000 jobs and nearly $100 million in new investment to the state. MEDC provides refundable tax credits against the state’s business tax to companies expanding or relocating their operations to Michigan, and also provides brownfield incentives to return industrial, commercial or residential property to productive use. Michigan competed with other states and countries to attract the companies that include Navistar Inc., Oxus America Inc., Silk Route Global Inc., Herman Miller Inc., JAC Products Inc., Jet Engineering, Romeo RIM Inc., Search Optics Inc., Weber Automotive Corp., Century Inc., Saint-Gobain Performance Plastics Corp. and The Dow Chemical Company. The city of Taylor received more than $221,000 to construct on a brownfield site a 40,000-square-foot industrial facility for Watson Engineering.

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Illinois will provide a $2.3 million business investment package to help Boeing develop a new facility at MidAmerica Airport in St. Clair County, Gov. Pat Quinn announced. The investment will leverage a $7 million Boeing investment and is expected to bring at least 70 new jobs to the region. The Illinois Department of Commerce and Economic Opportunity (DCEO) will administer the investment package that consists of job training funds, enterprise zone benefits, and economic development for a growing economy (EDGE) corporate income tax credits, which are based on job creation. Boeing will use the funds for the first phase of a potential three-phase project to expand its defense, space and security group operations and create its first Illinois-based manufacturing center.

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The Delaware Public Service Commission approved Delmarva Power’s Dover SUN Park contracts, the final step before construction can begin on the 10-megawatt solar power plant. Expected to reach full-scale operations by next summer, Dover SUN Park will supply enough clean power to serve 1,300 homes. The two agreements are a long-term contract with its developer, White Oak Solar Energy LLC, for the purchase of solar renewable energy certificates (SRECs), as well as a contract with the Delaware Sustainable Energy Utility for the preservation of SRECS and the ability to buy them back at a later date. Delaware Online reported that in return for payments to White Oak Solar Energy averaging $2.1 million a year for 20 years, Delmarva will receive 70 percent of all the renewable energy tax credits SUN Park generates.

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An $11 million mixed-use development in Detroit, Mich. received a $1.7 million tax credit from the Detroit Brownfield Redevelopment Authority in addition to federal new markets tax credits, Crain’s Detroit Business reported. The Ford Foundation provided a $325,000 loan for the retail component, and private debt is still being finalized. Developed by the Roxbury Group and Invest Detroit, the Auburn’s 58 rental units and more than 9,000 square feet of retail space will be built on a currently vacant and blighted property.

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Power-One, a power inverter manufacturer for the renewable energy industry, is opening a manufacturing facility in Phoenix, Ariz. to take advantage of the state’s renewable energy tax credits. The program provides a corporate income tax credit of as much as 10 percent of the total capital investment in a project for renewable energy companies that expand in Arizona. Power-One expects the new facility, which will produce photovoltaic and wind inverters, to begin operating this month and reach an annual inverter production capacity of 1 gigawatt by mid 2011.

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