Granholm Signs Legislation Positioning Michigan as Leader in Advanced Battery Development and Manufacturing

Contact: Liz Boyd 517-335-6397

April 6, 2009
             
Michigan to compete for $2 billion in federal grants

LANSING - Governor Jennifer M. Granholm today signed legislation that increases tax incentives for companies that develop and manufacture advanced batteries.  Today's action puts Michigan in prime position to capture up to $2 billion in federal advanced-battery development grants.

"We are committed to making Michigan the advanced-battery capital of the world and the home of the next generation of green vehicles powered by them," Granholm said.  "This expansion of incentives will keep our momentum going and demonstrate that Michigan is uniquely qualified for a significant portion of the $2 billion in federal recovery money designated to build America's advanced-battery infrastructure.  We are aggressively going after that funding as part of our strategy to diversify Michigan's economy and attract more high-tech jobs."
 
The new law adds an additional $220 million in refundable tax credits for companies involved in the development and application of advanced-battery research, engineering, and manufacturing.  The legislation expands the $335 million in tax credits that Governor Granholm signed in January, which were the first in the nation, bringing total incentives available to $555 million.  The legislation signed today:

-  adds an additional $220 million in tax credits to the $335 million approved in January;

-  increases from $70 million to $90 million the maximum amount of tax credits for companies engaged in vehicle engineering to support battery integration, prototyping and launch expenses;

-  allows the Michigan Economic Growth Authority (MEGA) to approve up to $300 million of the total $555 million in incentives for the construction of battery-cell manufacturing facilities.

In February, the Michigan Economic Growth Authority approved the first incentives from the original legislation for Ford and General Motors for pack engineering, integration and assembly, vehicle engineering, and advanced-battery technologies.  Those incentives, which included tax credits to help produce the battery for GM's Chevy Volt.

"This is an exciting time in Michigan as we are on the cusp of a new industry taking root," MEDC President and CEO Greg Main said.  "I want to thank Governor Granholm, our state legislators and our federal lawmakers for giving us the tools we need to grow this industry in Michigan and create thousands of new jobs."

U.S. Senator Carl Levin and Congressmen Sander Levin applauded Michigan's efforts to promote advanced battery development in the state.

"The $2 billion grant program passed by the Congress reflects our active efforts to create a vigorous partnership between the federal government, state government, and private industry to position our nation, its companies, and its workers in a leading role to develop the automotive technologies of the future," said Congressman Sander Levin.  "The legislation being signed today by the governor demonstrates that Michigan, the center of the domestic auto industry, is determined to be the fullest partner in this urgent national priority.  Today, we are showing that we can dynamically link the need for a strong industrial base with action on vital environmental goals."

"The state of Michigan has developed an innovative and generous set of refundable tax credits available for companies that will establish battery cell and battery pack manufacturing in Michigan," said Senator Carl Levin.  "These advanced-battery credits provide critical incentives that will attract companies to establish new manufacturing facilities in Michigan and should provide these companies a significant boost in competing for federal dollars provided by the American Recovery and Reinvestment Act.  Michigan is the heart of automotive engineering and manufacturing.  The incentives developed by the state of Michigan combined with the federal funding for battery manufacturing facilities are an essential part of continued Michigan preeminence in this field and will help to ensure that Michigan companies manufacture the green vehicle of the future and their critical components."

The bills signed today are House Bill 4515, sponsored by State Representative Dian Slavens (D-Canton), and Senate Bill 319, sponsored by State Senator John Pappageorge (R-Troy).

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