Fiat Chrysler has released an official statement in regards to its new amended tax credit agreement with the State of Michigan. The partnership will see the automaker invest at least $1 billion in its Michigan operations before 2029, allowing it to receive maximum amount of tax breaks it is entitled to.
“FCA US LLC values its productive partnership with the State of Michigan and its residents,” the statement reads. “The amended tax credit agreement with the MEDC (Michigan Economic Devlopment Corporation) provides greater economic certainty for all parties, caps the value of tax credits FCA US can claim, and requires the Company to make an additional $1 billion capital investment over the remaining term of the Global MEGA Tax Credit. FCA US, which has invested more than $4 billion in Michigan and added nearly 15,000 new jobs since 2009, does not have any future investment plans to announce at this time.”
General Motors and Ford, in addition to FCA, are entitled to tax breaks in Michigan under the Michigan Economic Growth Authority, which was put in place to keep the Big Three in Michigan in the midst of the 2009 global recession. FCA is entitled to $1.7 billion in tax breaks for 2014,