Lawmakers approve bill to create battery pack tax credits
Saturday, December 19, 2009
LANSING — The Michigan Legislature approved legislation Thursday that would create and fund tax credits for the production of automotive lithium ion battery packs, said Sen. Roger Kahn and Rep. Jim Stamas.
“This is tremendous news for the Great Lakes Bay Region,” said Kahn, R-Saginaw Township. “These key measures could help entice the pre-eminent partnership of Dow-Kokam to invest in Michigan and create hundreds of jobs for our hard-working people.”
House Bill 5469 is part of a legislative package that would create an additional Michigan Business Tax credit increasing the total number of available credits for advanced battery manufacturing.
According to Kahn and Stamas, the legislation could attract companies to produce more lithium ion battery packs in Michigan.
The credits could help lure the Dow-Kokam partnership to invest another $400 million for a proposed new facility in the Midland area, which would result in the creation of at least 400 jobs.
“The impact of 400 new jobs for our area has enormous potential,” said Stamas, R-Midland. “I’m glad we were able to pass this vital legislation to help bring these jobs to the Great Lakes Bay Region.”
Ford Motor Co. is also considering a plan to consolidate its electrification programs in Michigan that could result in $300-$500 million in new investment and more than 1,000 direct jobs.
Economic research studies have found that for each new job added for vehicle electrification, six to 10 spin-off positions are created as a result.
The bill has been sent to the governor to be signed into law.
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