LANSING – State Representative Kate Ebli (D-Monroe) announced that the House Tax Policy Committee passed a plan this morning that will help make Michigan a leader in emerging high-tech industries by dramatically expanding tax credits available to companies that are involved in the production, development and commercialization of advanced battery technologies. The plan now heads to the House floor for a full vote.
"Building on a plan that will create tens of thousands of jobs for our workers is the direction we must be headed in," said Ebli, Chair of the House Tax Policy Committee. "We've taken fast action on this plan and already moved it to the House floor for a full vote. I urge my colleagues in the House and the Senate to streamline its passage and get it to the Governor to be signed into law as quickly as possible."
The plan would secure an additional $200 million in tax credits for companies involved in 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 that support fellow Michigan businesses by giving priority in the awarding of these tax credits to those who commit to using local suppliers.
The plan builds on state tax credits signed into law in January that offered businesses up to
$335 million in 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. 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.
"Becoming the prime place for new and emerging high-tech industries to locate will help provide the good-paying jobs that our workers need," Ebli said. "We can't afford to lose these growing companies – and the jobs that come with them – to other states and countries. This plan will play a crucial role in attracting new investments and rebuilding our economy, and it's important that we act on it now."