The Michigan Economic Development Corporation has approved $7 million in tax incentives for Acrisure Insurance as it plans to move from Caledonia to Grand Rapids in 2021.
James Hohman, director of fiscal policy for the Mackinac Center for Public Policy, told Michigan Capitol Confidential that the incentive package was excessive.
“The state’s efforts to compete for jobs by selectively targeting certain companies is unfair and ineffective,” Hohman said. “The money used could better help the economy if left in taxpayers’ own pockets or spent elsewhere in the budget.”
The Mackinac Center for Public Policy
Caledonia Township Supervisor Bryan Harrison said the incentive package kept the company from leaving Michigan.
“These jobs and the ones being created with the move will continue to help people in my community pay their mortgage and support our regional economy.”
As part of the subsidy package, Acrisure will receive roughly $6 million in tax capture grants. The other $1 million is a performance grant, which provides that it must meet certain criteria in a state contract.
The insurance firm is expected to keep a minimum of 400 lucrative jobs and invest some $33 million in the city.
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