According to the Detroit Free Press, the tax exemption will allow Mercedes-Benz to purchase $2.3 million worth of equipment for the Redford site. Redford Township is located about 15 miles outside of the Detroit city limits.
Mercedes has yet to announce how much it will invest in the new research and development facility. The project is expected to spawn 223 new jobs.
In addition to conventional and alternative engine testing, the facility will also work on the automaker's next-generation transmissions, electronics and software. Rumor has it that Mercedes could also use the facility to create the company's first diesel-hybrid powertrain.