Gov. Rick Snyder: Fiat Chrysler Automobiles agreement strengthens state budget planning, ensures continued investment in Michigan
November 24, 2015
Tuesday, November 24, 2015
LANSING- The Michigan Strategic Fund today approved a revised agreement with Fiat Chrysler Automobiles (FCA) that caps the state’s liability for previous tax credits while requiring additional investment and job creation in Michigan, Gov. Rick Snyder said.
“Today’s agreement with Fiat Chrysler Automobiles (FCA) is an essential step in helping us better manage our state budget, while finding common ground that will ensure the company will continue to invest and create jobs in our state for years to come. We appreciate FCA for their continued partnership and willingness to help us provide greater economic certainty as we work to keep reinventing our state’s economy.”
The MSF resolution revises the agreement with Chrysler Group, LLC, now known as FCA US LLC, capping the state's liability for previously authorized job retention tax credits and providing incentives for FCA to invest an additional $1 billion in Michigan in the future. The resolution reduces the term of the Global MEGA Tax Credit by two years, sets annual limits on the tax credit value that may be claimed in a given year, and provides stability and predictability for the timing of payments for annual Global MEGA tax credits throughout the life of the tax credit.
In addition, the company will provide periodic forecasts of its estimated tax credits to the state to assist the MSF and state of Michigan in budget planning.