(MPRN-Lansing) Negotiations continue at the state Capitol on adopting new tax incentives to attract a large “cloud” data center to west Michigan.
If adopted, this would reverse the recent trend in the Legislature of stepping back from industry-targeted tax incentives. Supporters say the incentives will help seed a modern, growing industry in the state.
State Representative Chris Afendoulis (R-Grand Rapids Township) says it’s not unusual to offer special treatment to industries such as manufacturing, agriculture, and insurance:
“We do those things all throughout our state tax code and I think this is an industry that has great potential for growth in our state.”
But opponents say the incentives are designed primarily to benefit Las Vegas-based Switch, which is eyeing a location in west Michigan for a server farm. And other data center operators across the state say it will put them at a disadvantage.
“This is going to hurt my business,”
said Chuck Warner the president of Kalamazoo-based Secant Technologies. Warner says he’s added 20 new jobs so far this year without any special tax treatment.
