The Dearborn City Council voted 5-0 with two absent to approve an Industrial Facilities Tax Exemption for the Ford Motor Company's Dearborn Truck Plant following a public hearing on Thursday.
The exemption is for $247.4 million for the installation and upgrade of machinery.
According to Gary Evanko, tax assessor for the city of Dearborn, Ford is planning to invest a quarter billion in new equipment at its body plant, paint plant and assembly plant, located at 3001 Miller Road.
"This investment will retain the 3,250 jobs that are presently at this facility," Evanko said. "It's my opinion that this investment will ensure the viability of Dearborn's manufacturing sector."
The abatement only applies to equipment the company plans to purchase in the next two years, he said.
Evanko explained that by 2016, any new equipment purchased by Ford may be exempt from taxes due to the state of Michigan's plans to phase out personal property taxes.
As part of that plan, in 2016 a manufacturer with investments in machinery or equipment from 2013 to 2015 would be exempt from paying taxes on the investment. In addition, equipment purchased in 2005 or earlier would also be exempt. Ford Motor Company would instead pay taxes on the value of equipment it acquired from 2006 to 2012.