LANSING – House Democrats today announced a bipartisan, bicameral plan that will help make Michigan a leader in emerging high-tech industries by dramatically expanding the tax credits available to companies that are involved in the production, development and commercialization of advanced battery technologies. The original tax credits, signed by the Governor in January, offered businesses a potential $335 million in refundable tax credits.
"It's imperative that we support Michigan's workers and position our state as a leader in the advanced battery manufacturing industry," said House Speaker Andy Dillon (D-Redford Township). "These tax incentives will ensure that Michigan becomes a magnet for businesses in these emerging high-tech industries, creating good-paying jobs for Michigan workers now. I'm very pleased that we've been able to work across the aisle and with the Senate on this crucial issue for Michigan families."
The bipartisan initiative, proposed jointly by Dillon and Senate Majority Leader Michael Bishop (R-Rochester), would give 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, providing a continued benefit for new technologies and development. The plan also rewards companies who support fellow Michigan businesses by giving priority in the awarding of these tax credits to those who commit to using local suppliers.
The plan builds on the last tax credit initiative, which was the first of its kind in the United States and passed with overwhelming bipartisan support. The law authorized the Michigan Economic Growth Authority (MEGA) to provide refundable tax credits totaling up to $335 million over five years 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.
"As the state that put the world on wheels, I know we can be the state that leads the world into a cleaner, more renewable future," said Majority Floor Leader Kathy Angerer (D-Dundee). "Michigan workers are the best in the world, and it's through their hard work and ingenuity that we will develop new green vehicles that will lead the industry for years to come."