4 ms·

Respectfully, I do not think this is fully correct. These are in part state tax dollars being paid to industry. I’d welcome a good source to the contrary. http

by rbetts 3y ago

Respectfully, I do not think this is fully correct. These are in part state tax dollars being paid to industry. I’d welcome a good source to the contrary. https://www.legislature.mi.gov/documents/2021-2022/billanalysis/House/pdf/2021-HLA-0769-896200FB.pdf https://www.legislature.mi.gov/documents/2021-2022/billanaly...

legitster 3y ago
Maybe! This article could be mistaken calling this a tax abatement. The original press release refers to this as a "grant" (perhaps still tax abatement with financial shenanigans). Still, under the terms of the grant program, the state has lots of options to claw back any grant money if the recipient doesn't fulfill their requirements: https://www.michiganbusiness.org/48f6cb/globalassets/documents/reports/fact-sheets/critical-industry-program-guidelines.pdf https://www.michiganbusiness.org/48f6cb/globalassets/documen... I can't find any source on what the actual financial agreements of the grant are. UPDATE - I found the terms of the $600 million dollar grant (not tax abatement!): https://www.mackinac.org/archives/2022/GM%20Board%20Pack%20Award.pdf https://www.mackinac.org/archives/2022/GM%20Board%20Pack%20A... > The MSF may require repayment for: (i) failure to obtain the Jobs Commitment (proportional), (ii) mass relocation of jobs out of state, and (iii) breach of representations, misappropriation, insolvency. GM has been getting reimbursed quarterly based on real expenses they have occurred, but may have to give some or all of it back.
- tshirthoodie 3y ago
  You should update your original comment. HN is full of desperate efforts to dodge any skepticism of sketchy and dishonest capitalist behavior. It doesn't need more of them.
MR4D 3y ago
Page 9 of the document you linked to: * A provision that all money subject to a clawback or repayment provision must be paid within 90 days of notification by MSF. Amounts not paid within 90 days would be subject to a penalty of 1% per month, prorated on a daily basis. * That word "clawback" is key. Elsewhere in the document it refers to benchmarks, so I presume if the benchmarks are not met that the clawback would take effect. In this case I have no idea what the contract is with GM, so we also don't know the benchmarks that would impact the clawback. This is a good start though - hopefully someone can find the actual contract with GM.

by rbetts 3y ago

legitster 3y ago

Maybe! This article could be mistaken calling this a tax abatement. The original press release refers to this as a "grant" (perhaps still tax abatement with financial shenanigans). Still, under the terms of the grant program, the state has lots of options to claw back any grant money if the recipient doesn't fulfill their requirements: https://www.michiganbusiness.org/48f6cb/globalassets/documents/reports/fact-sheets/critical-industry-program-guidelines.pdf https://www.michiganbusiness.org/48f6cb/globalassets/documen... I can't find any source on what the actual financial agreements of the grant are. UPDATE - I found the terms of the $600 million dollar grant (not tax abatement!): https://www.mackinac.org/archives/2022/GM%20Board%20Pack%20Award.pdf https://www.mackinac.org/archives/2022/GM%20Board%20Pack%20A... > The MSF may require repayment for: (i) failure to obtain the Jobs Commitment (proportional), (ii) mass relocation of jobs out of state, and (iii) breach of representations, misappropriation, insolvency. GM has been getting reimbursed quarterly based on real expenses they have occurred, but may have to give some or all of it back.

tshirthoodie 3y ago
You should update your original comment. HN is full of desperate efforts to dodge any skepticism of sketchy and dishonest capitalist behavior. It doesn't need more of them.

MR4D 3y ago

Page 9 of the document you linked to: * A provision that all money subject to a clawback or repayment provision must be paid within 90 days of notification by MSF. Amounts not paid within 90 days would be subject to a penalty of 1% per month, prorated on a daily basis. * That word "clawback" is key. Elsewhere in the document it refers to benchmarks, so I presume if the benchmarks are not met that the clawback would take effect. In this case I have no idea what the contract is with GM, so we also don't know the benchmarks that would impact the clawback. This is a good start though - hopefully someone can find the actual contract with GM.