LANSING – House Democrats today hailed the announcement that four companies plan to invest more than $1.7 billion and create more than 6,600 jobs in Michigan in order to take advantage of Michigan's tax credits for advanced battery technologies, a plan that was the first of its kind in the nation. The House recently voted to expand the tax credit plan to $555 million, which was later signed by the Governor.
"This is a major step toward a stronger, more diversified Michigan economy," said House Speaker Andy Dillon (D-Redford Township). "These bipartisan efforts have shown that Michigan is open for business, and companies are responding with billions in investment and new, good-paying 21st century jobs. Though we know our work is far from done, this is great news for our state and our workers."
The Michigan Economic Development Corporation today announced that four companies were awarded state refundable tax credits for the production and development of advanced battery technologies, such as those found in hybrid or electric vehicles. Facility locations are pending a final site selection by the companies involved.
"This is a great day for Michigan, which is poised to become the world leader in advanced battery technologies," said State Representative Lee Gonzales (D-Flint Township), original sponsor of the tax credit plan. "These investments are proof-positive that Michigan is ahead of the game when it comes to attracting the new, dynamic industries of the 21st century economy. By positioning Michigan to be a magnet for this developing industry, we can spur future economic development and lead the way toward a greener, more sustainable future."
The four companies to receive tax credits are:
- Johnson Controls-Saft Advanced Power Solutions LLC, which plans to invest $220 million for a new manufacturing facility to produce lithium-ion cells for automotive use.
- LG Chem-Compact Power Inc., which plans to invest $200 million to manufacture lithium-ion battery cells in Michigan.
- KD Advanced Battery Group LLC, which plans to invest $665 million for a new 800,000 square-foot facility to produce its Superior Lithium Polymer Battery technology for electric vehicles.
- A123Systems Inc., which plans to invest more than $600 million for cell manufacturing and battery pack assembly.
"These tax credits are proven job creators, and these are exactly the type of investments that Michigan and its workers need," said State Representative Kate Ebli (D-Monroe), who serves as Chair of the House Tax Policy Committee. "Michigan needs to become the premier location for new and emerging high-tech industries, which will be vital to rebuilding our economy and creating thousands of new jobs for our workers. This is a major step in the right direction for our state."
State Representative Dian Slavens (D-Canton), who sponsored the plan to expand the original tax credit package to $555 million, also praised today's announcement.
"Our top priority must be to attract new businesses to Michigan and get our workers back on the job," Slavens said. "Not only does this plan do that, it lays the groundwork for future investment in this growing industry."