With strong bipartisan support, the state House today approved a plan sponsored by Rep. Michael Webber helping preserve jobs in Oakland County and elsewhere in Michigan.

The bipartisan plan would allow Tenneco to keep Michigan Economic Growth Authority credits originally awarded to Federal-Mogul to keep jobs within the state. Tenneco finalized a deal to acquire Federal-Mogul in 2018, and transferring the credits will help the company preserve employment without any additional costs to taxpayers.

“This is the smart thing to do for Michigan, its economy and its taxpayers – and it’s particularly important for Oakland County, since the company has a large presence here in Southfield,” Webber said.

“Companies change hands,” said Webber, of Rochester Hills. “It’s just a reality in this day and age. This plan reflects that reality while protecting taxpayers and making sure the Legislature has proper oversight moving forward.”

Tenneco has retained Federal-Mogul’s Michigan-based jobs, so the company should be able to claim the existing MEGA credit connected to those jobs, according to Webber.

“Oakland County is grateful to the Michigan House of Representatives, especially Reps. Michael Webber and Jason Sheppard, for approving legislation to restore Federal-Mogul’s tax credits following the iconic auto supplier’s purchase by Tenneco,” said Mike McCready, deputy director of Oakland County’s Department of Economic Development & Community Affairs. “They are saving hundreds of jobs across the state of Michigan today.”

The MEGA credit involved in this legislation is capped at $12 million. Webber’s bill specifically ensures the tax credit can’t be amended to last longer or cost more – an important protection for taxpayers.

The legislation applies only to the Tenneco case. The Legislature will maintain oversight on a case-by-case basis moving forward, because each company acquisition is unique.

Webber sponsors House Bill 4190 in the package. His bill – along with House Bills 4189 and 4191– now advance to the Senate for further consideration.

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