Dana Corp. will invest $7.6 million to upgrade its thermal products manufacturing plant in St. Clair, Mich. This investment, which includes $6 million in advanced new equipment and $1.6 million to add 28,000 square feet, is expected to result in the creation of 130 new jobs.
Recently amended legislation allows companies such as Dana to receive a refundable 15 percent Single Business Tax credit for taxes paid on industrial personal property for four years. The goal of this credit is to encourage investment and upgrades in Michigan facilities. The new law enables the Michigan Economic Development Corporation to offer Dana an SBT credit valued at $22,000 to help secure the company’s investment.
Based on the estimated investment of $6 million in new equipment, an additional SBT credit of up to $65,000 could be available in 2007.
State sales tax exemptions on manufacturing equipment make the company eligible for tax savings of $360,000. In addition, the state investment tax credit can be applied on the investment of $7.6 million up to a value of $53,000.
The package of incentives coordinated by the MEDC, the Economic Development Alliance of St. Clair County and the city of St. Clair is worth up to $1,362,000.
“Our expansion in St. Clair is off to a great start thanks to the support of county and state officials,” said Steven Monte, Division Manager of Dana’s Thermal Product group. “This addition will strengthen Dana’s ability to manufacture advanced Long thermal-management products for vehicle makers around the world.”
The city of St. Clair is considering local tax abatement worth up to $692,000 over 12 years to support the project. Additionally, the project qualifies for state education tax abatement worth up to $170,000.
Dana is a supplier of drivetrain, chassis, structural and engine technologies to every major vehicle and engine producer in the world. The Toledo, Ohio,-based manufacturer reported sales of $8.6 billion in 2005.
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