LANSING, Mich. (AP) - A Republican legislative leader and Gov. Rick Snyder said Tuesday they had a constructive meeting a day before the House potentially votes on economic development tax incentives being pushed as Michigan competes with other states to land a major electronics factory and other business expansions.
House Speaker Tom Leonard did not elaborate, except to say he would convey information to his GOP caucus Wednesday and “go from there.” He and five other top House Republicans met with Snyder three weeks after Leonard canceled a vote on the proposed “Good Jobs” program, which would let companies adding at least 250 jobs keep half or all of the income tax withholdings of their new employees for up to five or 10 years depending on wage levels.
The Republican governor wants to sign the bills soon because Michigan is in the hunt for Taiwanese electronics giant Foxconn, which plans to locate a multibillion-dollar display panel factory in the U.S. that could employ 5,000 workers. The GOP-controlled Legislature will meet for a rare voting session Wednesday amid a summer break.
“It is important with ’Good Jobs’ that it get done tomorrow,” Snyder said. “There are companies out there that are making decisions this summertime - July, August kind of timeframe. It’s important that we potentially have this as a tool in our toolkit to help bring some big job opportunities to Michigan.”
Without the incentives, he said, the prospects of winning the new jobs would “likely disappear.”
The legislation would cap the total value of the tax breaks at $200 million a year. It cleared the Senate months ago with support from business groups, economic development officials and construction unions, but has hit resistance from some House Republicans and conservative organizations that oppose such targeted business tax breaks. Leonard also expressed concern last month that Snyder had cut a deal with Democrats that would undermine other GOP priorities.
Leonard has not elaborated publicly. But legislative and administration officials have said the agreement included Snyder publicly saying he sees no need for more labor-relations bills after he and GOP legislators recently agreed to steer more newly hired school employees into a 401(k)-only retirement benefit instead of one with a pension. Exceptions would be made for changes to municipal retiree health care benefits and state civil service rules in his final 18 months in office.
Snyder on Tuesday declined to specify his deal-making with Democrats and said he has had “good dialogue with both Republicans and Democrats on why this bill’s a good thing.”
Snyder signed right-to-work laws in 2012. However, he has opposed Republican-backed legislation to repeal a state law that ensures “prevailing” union-level pay on state-financed construction projects since Democrats helped to propose a 2015 ballot initiative to raise taxes for road repairs.
Snyder has waited to sign the teacher retirement bill - a major priority for conservatives - due to the dustup over the job-creation incentives. He has until Thursday to sign or veto it, or else it will become law.
Foxconn will announce investment plans by early August for at least three states, Chairman Terry Gou said in June. He mentioned Michigan, Ohio, Pennsylvania, Illinois, Wisconsin, Indiana and Texas as manufacturing states with which Foxconn hopes to work.
The company assembles smartphones and other devices for Apple, Sony, Blackberry and other brands - mostly in China, where its plants employ about 1 million people.
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