Michigan Increases Tax Credits Available For Battery Designers, Manufacturers
By Greg Johnson April 7, 2009
Michigan Gov. Jennifer Granholm has upped the ante in her state's bid to become a key player in the design and manufacturing of advanced batteries.
On Monday, Granholm signed legislation that makes available an additional $220 million in state tax credits for advanced battery makers. The credits are on top of $335 million in incentives that Michigan made available in January.
Granholm said that the $555 million in tax incentives now available should put Michigan at the front of the line in an ongoing competition for $2 billion in federal battery development grants that are to be announced in May.
The flurry of battery-related activity is part of Michigan's bid to create new jobs in the wake of the traditional automobile industry's dramatic restructuring. Granholm envisions advanced battery design and manufacturing as blossoming into an $18 billion industry that, by 2020, could create 30,000 jobs in her state.
One firm that hopes to win tax credits when they are awarded next week is A123 Systems, the Massachusetts-based firm that on Monday was selected to supply lithium ion batteries for Chrysler LLC's electric cars. A123 Systems has a small presence in Michigan, but has announced plans to build a new facility in the state.
"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 during a Monday news conference.
U.S. Sen. Carl Levin (D, Mich.) on Monday said that the incentives will "help to ensure that Michigan companies manufacture the green vehicle of the future and their critical components."
Greg Johnson, Contributor
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