At a time when Michigan automakers are experiencing unprecedented challenges, House Democrats are working to make Michigan the home of the next generation of autos – and the batteries that power them.
House Democrats recently passed a bipartisan plan that expands groundbreaking tax credits to companies involved in the production, development and commercialization of advanced batteries. The plan, which was proposed by State Representative Dian Slavens (Canton), was signed into law in April. It makes a total of $555 million in tax incentives available to make Michigan a world leader in this cutting-edge technology.
"Michigan is the state that put the nation on wheels and has led the way in automotive advances for more than 100 years," Slavens said. "These tax credits will help create good-paying jobs for our workers and ensure that Michigan remains the epicenter of auto technology in the 21st century."
The plan builds on state tax credits signed into law in January – the first of their kind in the United States – offering businesses refundable tax credits for battery pack assembly; research and engineering to support battery use in vehicles; engineering of advanced battery technologies; and capital investment for construction of battery manufacturing facilities.
The Michigan Economic Growth Authority (MEGA) earlier this year awarded the first of these tax breaks to General Motors, for the production of lithium-ion batteries for its new Chevy Volt. Since then, the tax incentives and Michigan's top-notch workforce have resulted in $1.7 billion in investments by four world-class advanced battery companies that will create more than 6,600 jobs in Michigan.
"In proposing the initial tax credit initiative, it was encouraging to work across the aisle to create jobs for Michigan workers," said State Representative Lee Gonzales (Flint Township), sponsor of the original tax credit plan. "By taking this plan a step further, we are sending the message that Michigan is open for business, and that the green vehicles of tomorrow will be built right here in Michigan."