LANSING – Macomb State Representatives today applauded 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.
"In order to strengthen our economy we need to attract good-paying jobs in high-demand fields to Michigan," said State Representative Sarah Roberts (D-St. Clair Shores). "This plan will help make our state a leader in the advanced battery manufacturing industry. It also will help ensure Michigan becomes a hot spot for other emerging industries looking for a place to grow."
The bipartisan initiative 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.
"With one of the highest unemployment rates in the country, Michigan workers are facing difficult times and many are out of work," said State Representative Jon Switalski (D-Warren). "Michigan must position itself to capture jobs and businesses in emerging industries, like the production of lithium-ion batteries. These incentives are crucial to getting our workers back on the job and giving a much-needed boost to our auto industry."
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 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.
"Moving forward quickly on advanced battery manufacturing enables us to build partnerships with our automakers that will create thousands of jobs for Michigan workers," said State Representative Jennifer Haase (D-Richmond). "We want people to think of Michigan when they think of the next generation of fuel-efficient vehicles. These incentives are already paying off, and rewarding companies that commit to Michigan is the best way to create more jobs now."
Under the most conservative estimates, the battery tax credits will create over 40,000 jobs and over $9 billion in economic activity by the year 2020, according to the Center for Economic Analysis at Michigan State University. The most likely scenario would see Michigan gaining nearly 90,000 jobs and over $18 billion in economic activity as result of the initial $335 million program.
"Too many of our hard-working residents have seen their jobs outsourced to other states and countries," said State Representative Fred Miller (D-Mount Clemens). "These tax incentives are essential to revitalizing our economy and getting our residents back to work. I applaud my colleagues on both sides of the aisle for taking such swift action on this plan."