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State Banks on $45M Incentive to Keep Kmart HQ

TROY, MI-The state is dangling a $44.7-million carrot to hang on to Kmart's headquarters, as well as 1,500 jobs. The company also could receive $750,000 in employee training funds.

By Dan Heaton | Updated on October 27, 2004

TROY, MI-The state has offered Kmart Holding Corp. at least $45 million in incentives to keep its headquarters in Michigan. Kmart is considering moving its headquarters, now in Troy, to Georgia or other locations. Kmart was originally founded in the Detroit area as the S.S. Kresge Corp.

The Michigan Economic Development Corp. is offering incentives that include up to $44.7 million over 10 years from the Michigan Economic Growth Authority Job Creation tax credit. The incentive package is based on Kmart keeping 1,500 jobs in Michigan with an average annual salary of $70,000.

Kmart would have to maintain that job level for 10 years to get the annual tax credit. To get the credit, Kmart would also have to demonstrate that it has received a viable proposal to relocate in another state, says Paul Krepps, a spokesman for the MEDC.

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