Listen to the article
Michigan’s $2.4 Billion Business Incentive Program Shows First Signs of Job Creation
Michigan’s embattled $2.4 billion Strategic Outreach and Attraction Reserve (SOAR) Fund is finally generating jobs, with reports showing 1,846 positions created in 2023 among 10 companies that received $1.74 billion in taxpayer subsidies.
While this represents less than 13% of the 14,559 new jobs promised over several years, it marks the first tangible employment gains from Governor Gretchen Whitmer’s flagship economic development initiative launched in 2022. Additionally, Dow Inc. retained 5,028 jobs, keeping pace with its commitment to maintain at least 5,000 positions in Michigan through 2032 in exchange for a $120 million grant to modernize two Midland-area facilities.
Despite these gains, SOAR remains politically contentious. Lawmakers defunded the program for the current budget year as both Republicans and some Democrats question whether the billions spent deliver adequate returns on investment.
“Large checks are not necessarily going to fix everything,” said Rep. Jasper Martus, D-Flushing, reflecting shifting views on economic development policy among legislators.
MEDC spokesperson Danielle Emerson defends the program, noting that the scale of investment reflects the magnitude of SOAR projects, with hiring expected to unfold gradually over years. “We have every confidence it will continue to happen,” Emerson told Bridge Michigan. “These are good-paying jobs with important economic impacts to the communities they are in.”
Success stories include Solar Technology LLC, a Corning subsidiary in Saginaw County’s Richland Township. The company received a $68 million SOAR award plus $29 million for utility upgrades to support its solar energy component factory. It has already created 1,244 jobs—exceeding its target of 1,151—with average annual salaries of $55,223. A company spokesperson confirmed the SOAR grant helped accelerate hiring.
Township Manager Rob Grose described the factory development as a “long haul” of at least three years but acknowledged it has been “a great asset to the community.”
Data analysis by Bridge Michigan shows the state has awarded companies $1.86 billion through SOAR, with $1 billion already spent. An additional $660 million went to economic development groups for site readiness without specific companies attached, including $259 million for a speculative megasite near Flint.
The cost per new job created so far calculates to approximately $795,000 based on active job-creation incentives. If all promised jobs materialize, that figure would drop to about $160,000 per position.
Many SOAR projects have evolved since the program’s 2022 launch, particularly in the volatile electric vehicle sector. Ford Motor Company scaled back its initial plans, reducing its $3.5 billion battery factory investment in Marshall to $2.5 billion with expectations of 1,700 jobs. Ford’s SOAR awards were consequently trimmed by $70 million to $326.3 million.
Ford reported 146 new workers at its BlueOval Michigan factory, where it plans to produce both EV batteries and energy storage systems. The average salary for these positions is $75,000, with over 70% of workers coming from Marshall and nearby communities. The factory is scheduled to open this year.
LG Energy Solution’s 2.8-million-square-foot battery factory near Lansing exemplifies how projects have pivoted. Originally a joint venture with General Motors, GM sold its share to LG, which shifted focus from EV batteries to energy storage systems. The $120 million SOAR award transferred to LG, which recently secured a $4.3 billion contract with Tesla. The company has hired 408 of its required 1,360 workers, with regular production starting this quarter.
GM has begun initial hiring at its Orion Assembly plant in Oakland County, which was retooled from EV production to manufacture gas-powered trucks and SUVs. The company projects about 1,500 workers by year-end as production begins in early 2027.
Some projects have stalled or been canceled. Our Next Energy in Van Buren Township pivoted from EV batteries to energy storage systems and defense sector applications but has only hired 48 of its promised 2,112 workers. The company laid off 29 employees at its Oakland County headquarters and scaled back plans for its battery gigafactory, leading the state to pause its SOAR funding.
Gotion Inc.’s $175 million award was canceled, with the state seeking return of $50 million already disbursed after determining the company defaulted by failing to progress on its EV battery factory near Big Rapids. Highland Copper’s $50 million award for an Upper Peninsula copper mine and the University of Michigan’s $100 million allocation for a data research center remain approved but unfunded.
As of January, approximately $651 million in SOAR funding remained available. Governor Whitmer is seeking an additional $150 million for site readiness, but public backlash and legislative skepticism create uncertainty around the program’s future.
“I think the people of Michigan are starting to become more and more fed up with these failed economic decisions,” said Rep. Steve Carra, R-Three Rivers. Speaker Matt Hall, R-Richland Township, has called for SOAR’s repeal.
The MEDC maintains that these investments deliver benefits beyond direct hiring, including construction jobs and opportunities for local businesses. “These projects were never about instant results,” Emerson said, “rather anchoring investments that will deliver opportunity for decades to come.”
Fact Checker
Verify the accuracy of this article using The Disinformation Commission analysis and real-time sources.
7 Comments
As someone interested in economic development, I’ll be watching SOAR’s progress closely. It’s a complex issue with valid concerns on both sides. Hopefully the program can find the right balance between job creation and responsible spending.
I appreciate the mixed perspectives on SOAR’s performance so far. Lawmakers are right to scrutinize whether these large subsidies are the best use of taxpayer money. At the same time, any new jobs created are a positive sign for Michigan’s economy.
The shift in views among legislators on economic development policy is an interesting dynamic. It shows how these programs are being scrutinized more closely for tangible results.
1,846 new jobs from $1.74B in subsidies doesn’t seem like an overwhelming return so far. But it’s a start, and I’m curious to see if SOAR can improve its efficiency over time.
Retaining 5,028 jobs at Dow Inc. through a $120M grant is an interesting approach. Incentivizing companies to maintain a certain employment level could be an effective way to protect existing jobs. Still, the overall SOAR program seems to have a long way to go.
The $1.74B in taxpayer subsidies to these 10 companies is a significant investment. Hopefully the jobs created can justify the cost, but I can understand the legislators’ concerns about returns on investment. These types of programs need close monitoring.
Interesting to see Michigan’s $2.4B SOAR program starting to deliver on job creation, even if it’s still a fraction of the promised total. Curious to see if the program can maintain momentum and prove its worth to skeptical lawmakers.