METRO DETROIT - House and Senate Democrats today announced a plan to boost Michigan’s emerging advanced battery sector, an industry that is putting thousands of Michiganders back to work. The Democrats’ plan would create new, targeted and transparent tax credits for businesses and individuals investing in the advanced battery sector - incentives that Gov. Rick Snyder and the Legislature announced they would not pursue in the future, putting jobs and the future of Michigan’s electric vehicle sector at risk.
This proposal to boost Michigan’s advanced battery industry means one thing: jobs and new economic opportunity for Michigan, said State Representative Jon Switalski. “It’s essential for Michigan to support 21st century innovation, and help put metro- Detroiters back to work. This is why I’m sponsoring bills to jump-start this promising industry. Battery technology is absolutely essential to the future of the auto and manufacturing sectors, and Michigan must be ready to reclaim our reputation as a global leader in manufacturing.”
Under the advanced battery proposal, Michigan would provide the following:
Tax credits for battery producers and manufacturers, including battery pack manufacturing, facilities construction, vehicle integration and others;
Substantial income tax credits for people who buy an electric vehicle made in Michigan;
Tax credits for the purchase and installation of electric vehicle charging stations;
A $50 million economic gardening grant for electric vehicle and battery businesses, to come from existing funds in the Michigan Economic Development Corp.; and
Reusing and revitalizing existing, unused incentives for projects like the shuttered Ford Assembly plant in Wixom that would support future business development and convert the area into a clean energy park.
To ensure accountability and protect taxpayers, the credits will be provided only to businesses that prove job creation and after thorough background checks have been conducted.
As of December 2009, Michigan’s battery incentives attracted more than $3 billion in new investments and created more than 6,600 new jobs.[i] Michigan now leads the nation in advanced auto sector jobs, with 38,067 total workers in 97 facilities.[ii] In 2008, Michigan became the first state to approve state-level incentives to grow the advanced battery sector. The United States is on track to produce 40 percent of the world’s advanced batteries by 2015, with the majority coming from Michigan factories.[iii]
[i] http://www.housedems.com/news/archive/house-passes-advanced-battery-plan
