Fiat Chrysler Automobiles is seeking up to $160 million in tax incentives from the state of Michigan for the planned expansion of its Detroit production facility.
In an email sent to The Detroit News, the Italian-American car manufacturer said that it is still negotiating its tax incentives with the state.
“FCA has confirmed that it has applied for up to $160 million from existing state incentive programs as related to its proposed development at the Mack Avenue Engine Complex and Jefferson North Assembly Plant. As these incentives have yet to be approved and negotiations are still pending, we cannot comment further.”
A final community benefits report submitted to the City Council reveals that FCA is seeking incentives for the Industrial Property Tax Abatement, Goods Jobs for Michigan Program, Michigan Business Development Program and State Essential Services Assessment Exemption. If FCA were to be granted $160 million in incentives, this would represent roughly 6.4 per cent of the $2.5 billion it plans to invest in the Mack Avenue Engine Complex and Jefferson North Assembly Plant.
FCA’s tax incentive request will need to go through the Michigan Strategic Fund before it can be approved. The earliest this can happen is May 28.
As the car manufacturer prepares to expand its Detroit facilities, the City Council has approved a handful of land swaps which involves Hantz Farms, DTE Energy Co., Detroit Land Bank Authority and property owner Michael Kelly.
The company’s expansion plans call for $1.6 billion to be invested into adding a new plant at the Mack Avenue facility while also investing $900 million to modernize the Jefferson North Assembly Plant.