LANSING – Conversations with Foxconn Technology Group over locating a plant in the state are continuing and a large incentive package is necessary to remain competitive for such large projects, Jeff Mason, the chief executive officer of the Michigan Economic Development Corporation, said this week.

Michigan missed out on an initial multibillion dollar plant that’s to locate in Wisconsin, but is still in the running for another plant.

A multibillion dollar proposal to lure a Foxconn or other major company like Amazon is something “we think that to compete for something like that” is necessary, Mason said.

Mason said conversations are still taking place between the state and the Taiwanese electronics manufacturer. Where those talks are at or what the possible timeline is he didn’t say.

In letters to Foxconn obtained by the Milwaukee Journal Sentinel, the state of Michigan offered the company about $3.76 billion in incentives for the plant that ultimately went to Wisconsin and another $3.06 billion for a yet-to-be-announced plan.

These incentive packages were reduced due to the final language of the Good Jobs for Michigan package (SB 42, SB 243 and SB 244).

Of the proposal Michigan made for the plant that went to Wisconsin, about $3.03 billion in tax cuts were offered for a proposed site in Marshall, of which $1.78 billion was a renaissance zone. Another $1.22 billion was in the manufacturing personal property tax exemption, which is not an incentive specific to the project but rather a personal property tax reform enacted by the state.

Wisconsin, on the other hand, offered a $3 billion incentive package geared heavily toward cash payments.

The second plant the state is bidding on is proposed for a site in Romulus with a projected $4.2 billion investment and 5,200 jobs. Of that, $2.5 billion is in tax incentives, including a $1.07 billion renaissance zone as well as $1.07 billion from the personal property tax reform.

Of the $544.71 million in cash incentives, $425.82 million was from the Good Jobs package that would likely fall to about $200 million under the final plan.

Mason said the Good Jobs plan wasn’t specifically targeted at Foxconn but is generally meant for attracting large employers to the state.

This story was published by Gongwer News Service.