Michigan approves amended tax incentives for Dow, AK Steel.
Michigan has approved amended tax incentives so Dow Chemical has more time to add jobs and AK Steel can qualify for tax credits following a merger. The deals OK'd Tuesday by the Michigan Strategic Fund Board impose new caps on the tax credits at $61.4 million for Dow and at $20.3 million for the steelmaker. Economic development officials say the AK Steel agreement reduces Michigan's estimated liability by about $23 million. The state in 2005 had authorized incentives for Severstal Dearborn, which merged into AK Steel in 2014. Both Republican and Democratic lawmakers have criticized the Michigan Economic Development Corp.'s negotiations because legislation to let AK Steel claim the credits stalled in 2016. Dow's deal was changed because it stopped making solar shingles and took full ownership of Dow Corning.