LANSING – The Michigan House of Representatives today passed a bipartisan plan proposed by State Representative Dian Slavens (D-Canton) that will provide an additional $200 million in tax credits to companies that are involved in the production, development and commercialization of advanced battery technologies. The tax credit plan, which will make Michigan a leader in emerging high-tech industries, passed the House with overwhelming bipartisan support and is now headed to the Senate.
"In these times of economic uncertainty, we must stand with our working men and women and pursue aggressive strategies for job creation," Slavens said. "This plan will help draw new and emerging industries to Michigan, creating thousands of jobs. Our workers have the skills and the know-how to make Michigan a leader in the 21st century."
The plan gives an additional $200 million in tax credits for companies involved in all aspects of advanced battery development. These tax credits would be spaced out over the next four years, which will provide a continued benefit for these new technologies and their development. The plan also will reward companies that support fellow Michigan businesses by giving them priority in the awarding of these tax credits if they commit to using Michigan suppliers.
In January, the Governor signed the first $335 million in high-tech battery tax credits, which were the first of their kind in the United States. The Michigan Economic Growth Authority (MEGA) will provide 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. MEGA awarded the first of these tax breaks last month to GM, for the production of lithium-ion batteries for the upcoming Chevy Volt. The initial battery tax credits are expected to create more than 90,000 jobs and over $18 billion in economic activity by the year 2020, according to the Center for Economic Analysis.
"Michigan is going through an unprecedented economic crisis and it is our responsibility to provide our workers with the good-paying jobs that advanced manufacturing will create," said Majority Floor Leader Kathy Angerer (D-Dundee). "We have the opportunity to solidify Michigan's place as a global leader in high-tech industries. I urge my colleagues in the Senate to act swiftly in supporting this plan."