Justinian C. Lane, Esq.
Let Justice Be Done, Though the Heavens May Fall

Justinian Lane's Blog

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Tax breaks, not tort reform brings jobs to Michigan

Just yesterday Pharmalot had a story about Pfizer pulling jobs from Michigan, despite it's incredibly pro-pharmaceutical preemption laws.  Today, Pharmalot covers a pharmaceutical bringing jobs to Michigan. 

The drugmaker, which makes generics, pharmaceutical compounds and private label, over-the-counter meds, will invest $10.5 million in its existing headquarters and production facilities and receive a tax credit valued at $8.4 million over 12 years, according to the Western Michigan Business Review.

And as part of the deal, Perrigo plans to add 99 jobs over the next year toward a total of 400 jobs over five years. A Perrigo spokesman tells us the jobs will be spread across the company, including product development and quality, manufacturing and finance. The jobs directly created will pay an average weekly wage of $81. An economic analysis for the Michigan Economic Development Corp. indicates the expansion overall could generate up to 1,039 jobs in Michigan by 2020.

In addition to the state tax credit, the City of Allegan will consider a $1.4 million, 12-year tax abatement on real and personal property for Perrigo. Why so much? Perrigo “very seriously” considered shifting activities to New York or New Jersey, but the MEGA tax credits contributed to the decision to expand in Michigan.

Source: Perrigo Plans 400 New Jobs In Michigan // Pharmalot

The company decided to stay in Michigan and recruit the laid-off Pfizer workers because of tax credits and not because of preemption. 

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