LANSING – Soundly turning down attempts to trim its provisions, the Michigan Senate approved bills giving targeted tax breaks to Hemlock Semiconductor for a potential expansion of its solar energy panel manufacturing business. The bills providing credits worth $35 million a year for the company’s high energy use were sent to the House, which had passed a parallel version earlier.
Proponents say the breaks are key to helping the state diversify the economy, and particularly attract high tech, high wage jobs to fill a void left by the declining manufacturing sector.
But Sen. Nancy Cassis (R-Novi), chair of the Senate Finance Committee, called the incentives unprecedented and excessive. She said the cost per job from all of the approximately $500 million in tax benefits would be $90,000, compared to about $13,000 for the average of other projects that are aided with state incentive packages.
Amendments she offered to trim the tax benefit by 25 percent won support from just five members.
The legislation allows a credit against the Michigan Business Tax for 12 years for a new or expanded facility, and provides for the state to send refund checks if the credits total more than what the company owes in taxes.
Only Cassis and Sen. Jud Gilbert (R-Algonac) opposed the bills (SB 1265 , SB 1266 , SB 1267 , SB 1268 , SB 1269 and SB 1270 ).
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