The Latest: Michigan OKs tax breaks for firms adding jobs

Markets Associated Press

The Latest on the Michigan Legislature's consideration of economic development tax incentives (all times local):

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3:40 p.m.

Qualified companies that create hundreds or thousands of Michigan jobs would receive state tax incentives under bills approved by lawmakers.

The votes Wednesday come six years after Gov. Rick Snyder and fellow Republicans ended such breaks in favor of a scaled-back economic development program.

Advocates say the new incentives are structured better and will help Michigan compete with other states to land new good-paying jobs. Critics call the Snyder-backed legislation "crony capitalism" and say it comes at the expense of individuals who also deserve a tax break.

Snyder has pushed for passage of the "Good Jobs" program this summer, as Michigan tries to persuade Taiwanese electronics contractor Foxconn to build a 5,000-employee display panel factory in the state.

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1:05 p.m.

Qualified companies creating at least 250 jobs in Michigan would receive tax incentives under legislation approved in a crucial vote by the House.

The move clears the way for the "Good Jobs" program to win final Senate approval later Wednesday. Gov. Rick Snyder is pushing for passage of the tax breaks this summer as Michigan tries to lure Taiwanese electronics giant Foxconn to build a 5,000-employee plant in the state.

The main bill passed 71-35, with a mix of Republican and Democratic support.

The Republican governor and GOP-led Legislature shifted Michigan away from providing economic development tax incentives in favor of a smaller pot of grants and loans when he took office. But he's open to them now and says Michigan needs to compete with other states for large projects.