Michigan approves $10 million tax credit for Whirlpool

Michigan approves $10 million tax credit for Whirlpool
 
Date May 16, 2006
Section(s) Local News
Brief  
 
By JESSICA LOWE

NDN Staff Writer

BENTON HARBOR, Mich. — Michigan Gov. Jennifer Granholm approved more than $10 million in tax credit for Whirlpool Corp. today.

The tax credit was facilitated by the Michigan Economic Development Corporation, a division of the Michigan Department of Labor and Economic Growth, to help maintain and create jobs at Whirlpool’s Benton Harbor-based headquarters. Whirlpool officials have announced that 400 additional jobs will be created in Michigan, in the wake of the purchase and integration of Maytag Corp.

“We’re happy that Whirlpool is bringing these jobs to Michigan,” said Mike Shore, spokesperson for MEDC. “Whirlpool started 100 years ago, give or take a few years, and we’re happy to see them enlarging in Michigan.”

Shore said the MEDC and Gov. Granholm went to work saving Michigan jobs once the acquisition of the 113-year-old Maytag Corp. was completed.

“We operate in a global economy and we are concerned everyday (about maintaining jobs in Michigan). The assumption is when a Michigan company buys another company (we could lose jobs in the state), we work really hard to keep those jobs in Michigan and we work to attract new jobs,” Shore said.

The MEDC said the $10.4 million is for a 13-year period. It is just the latest state-garnered money for the Fortune 500 company. The State of Ohio committed nearly $30 million in assistance to Whirlpool in an effort to help integrate all former Maytag laundry operations in the state. Ohio Gov. Bob Taft announced Wednesday that Whirlpool planned to create more than 1,100 jobs in its Clyde and Marion plants and that Ohio’s incentive package was an attempt to secure those jobs.

Iowa’s Gov. Tom Vilsack offered Whirlpool Corp. a package worth more than $20 million in an effort to keep Maytag jobs in Iowa to no avail. At one point in discussions with Whirlpool, Vilsack offered to build a new, state-of-the-art production operation in Newton. He said Whirlpool turned down the offer saying it already had modern production facilities in place.

“I want to assure the people of Newton and Iowa that the State of Iowa did everything it possibly could in an effort to preserve and maintain and expand job opportunities in the community,” Vilsack said Wednesday following Whirlpool’s announcement that all Maytag operations in Newton would close by the end of 2007.

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