LANSING – Macomb County State Representatives Jon Switalski (D-Warren), Jennifer Haase (D-Richmond) and Sarah Roberts (D-St. Clair Shores) today voted in favor of a bipartisan plan to 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 now awaits action in the Senate.
"As Michigan's unemployment rate nears 12 percent, it's crucial that we take serious action to get our workers back on the job," Switalski said. "Expanding these tax credits is a great way to bring new, high-tech industries to Michigan. This is a common-sense plan that will create much-needed jobs for Michigan workers and give our economy the boost it needs."
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.
"Making Michigan a leader in the advanced battery industry will create more opportunities for our highly skilled workers," Haase said. "I'm glad to see our lawmakers working together to do what's right for our working families and our economy."
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 at MichiganState University.
"Emerging industries, like this one, are a great way to get our state's economy moving again," Roberts said. "Building high-tech batteries here in Michigan can help create thousands of jobs for our Michigan workers. It's also going to show other industries in the renewable energy sector that Michigan is a great place to locate and grow their business."