LANSING – State Representative Gary McDowell (D-Rudyard) 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.
"This plan will make Michigan attractive to high-tech industries and create good-paying jobs for our highly skilled workers," McDowell said. "We need these kinds of rapidly growing businesses to revitalize our economy. These are the types of industries that will make Michigan a leader in the 21st century global economy."
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.
"With so many people in Michigan suffering in these tough economic times, this plan will help to create new jobs and new opportunities," McDowell said. "Our lawmakers worked across the aisle to pass this plan to make Michigan a leader in advanced manufacturing. I urge the Senate to pass this plan to turn Michigan's economy around."