Fiat Chrysler has agreed to invest $1 billion more in Michigan as part of an agreement with the state, Automotive News reports. The agreement, which was put in place Tuesday after review by the Michigan Strategic Fund board, requires FCA to invest $1 billion before 2029 in order to receive the maximum amount of state tax credits offered to it.
All of the Big Three automakers are entitled to tax breaks in Michigan under the Michigan Economic Growth Authority – put in place to keep the automakers in the state in the midst of the 2009 global recession. The Michigan Strategic Fund board amended the amount of tax breaks FCA is allowed in the state through 2014 to $1.7 billion, and at the same time implemented a rule requiring $1 billion in investment from FCA.
“The amended tax credit agreement with the MEDC 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,” Fiat Chrysler said in a prepared statement.
“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.”