WNEM-TV5 in Saginaw reports that questions have been raised regarding an "alleged preferential tax deal" involving the Michigan Economic Growth Authority and GlobalWatt Inc.
A Mackinac Center investigation by Fiscal Policy Director Mike LaFaive and Communications Specialist Kathy Hoekstra produced an essay and this video examining the details of the agreement and paperwork filed by the company to obtain state subsidies.
“It hurts Michigan because it redirects energies from our state officials when they’re participating in an incentive program that’s not effective,” LaFaive told The Saginaw News. “There are very explicit costs associated with these transactions, even if they’re not all up front.”
GlobalWatt told WJRT-TV12 in Flint it "will be hiring a few employees next week."
"The two applications submitted by GlobalWatt claim that the company was offered 'up-front cash' incentives to locate in Texas, but officials with the Texas state government and with Corpus Christi's development unit said they never offered such assistance," Hoekstra told the Midland Daily News.