Michigan board approves tax breaks for GM

DETROIT, Nov. 17 (UPI) -- A development board in Michigan approved of new tax breaks for General Motors Co., to entice the automaker into keeping its headquarters in Detroit.

Program administrator for the Michigan Economic Growth Authority Karla Campbell said GM had sent in an application to MEGA with the understanding "the headquarters is at risk without this credit."

GM intends to downsize the number of personnel at its headquarters in Detroit's Renaissance Center, by moving development and marketing staff closer to design and testing facilities, The Detroit News reported Tuesday.

GM spokesman Greg Martin said the automaker "remains committed to maintaining the Renaissance Center as its global headquarters," adding the company would "work closely with the state and the city to retain our presence in Detroit."

While offices at the Renaissance Center are 67 percent occupied, GM has 45 percent fewer salaried employees compared to a decade ago and requires less space.

The News said GM plans to maintain 2,500 workers at its Detroit headquarters out of 4,000 currently employed there. MEGA, meanwhile, said it would make a final determination on the terms of the tax credit by Dec. 18.