LANSING – State Representatives Lisa Brown (D-West Bloomfield) and Vicki Barnett (D-Farmington Hills) today voted for 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.
"By attracting high-tech industries, we will create more good-paying jobs and diversify our economy," Brown said. "This plan puts Michigan at the forefront of this growing industry, which will attract the kind of investment and job growth that we need in order to move Michigan forward."
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 at Michigan State University.
"Turning Michigan's economy around is not a partisan issue, so I'm pleased to see that this measure received strong support from my colleagues on both sides of the aisle," Barnett said. "Not only does this plan make Michigan more attractive to businesses looking to settle here, it also creates the good-paying jobs that our residents need now. This common-sense approach is a win for both businesses and workers, and I hope the Senate moves quickly to pass this plan."