Insurer Among Companies Approved for Michigan Tax Credits

A state economic development board is approving tax breaks for several projects aimed at bringing new jobs to Michigan. One of the companies approved for the tax breaks is Auto-Owners Insurance Group in Delta Township, near Lansing.

Gov. Jennifer M. Granholm has announced that the Michigan Economic Development Corporation (MEDC) is helping seven companies grow in Michigan and is backing three brownfield redevelopment projects. Combined, the 10 projects are expected to create 2,815 new jobs (1,507 direct and 1,308 indirect), retain 150 jobs, and generate over $254 million in new investment in the state.

Auto-Owners Insurance Group, which provides life, home, car and business insurance, plans to invest approximately $105 million to expand its corporate headquarters across from the company’s existing site in Delta Township, according to the governor’s office.

It is anticipated that the project will create 1,270 total jobs, including 800 directly by the company.

The MEDC estimates the increased economic activity created by the project will create an additional 470 indirect jobs.

Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board approved a state tax credit valued at $23.1 million over 10 years to encourage the company to expand in Michigan over competing sites in other states in the region. Delta Township is considering an abatement to support the project.

Construction of the project is expected to begin after 2012.

Sources: Michigan Governor’s Office, Associated Press

Topics Carriers Michigan