LANSING – The Michigan Economic Development Corporation has not issued any credit certificates for either the cell manufacturing tax credit nor the MEGA tax credit awarded to LG Chem Michigan in 2009, though technically LG Chem has not yet filed for them.

“LG Chem Michigan was awarded cell manufacturing and MEGA tax credits for its Holland battery project. To date, MEDC has not issued any credit certificates for either,” the MEDC said in a statement.

In 2009, under then-Governor Jennifer Granholm, LG was awarded a $100 million state battery tax credit and $25 million MEGA state tax credit. It was not immediately clear what the conditions of the agreement were that would have ensured the company could begin applying for them as of last year.

But the state also approved a Renewable Energy Renaissance Zone in the City of Holland for the LG Chem property, which exempts the plant from most local taxes. According to a June 2010 press release by the MEDC, then-Governor Jennifer Granholm approved of a 15-year, 120.24-acre zone for the new LG Chem-Compact Power Inc. advanced battery facility.

Of that Renaissance Zone investment, the MEDC on Friday said, “According to a 2012 Progress Report, the company is close to meeting its capital investment milestone, which is due December 2014. The job creation milestone is due December 2015.”

Though the MEDC could not independently confirm the numbers pertaining to the Renaissance Zone, it has been reported that LG was to create 300 full-time jobs by December 2015 to be able to receive the zone credit.

The 2010 MEDC statement also noted that the company would spur $302 million in private investment as well. In October, the Grand Rapids Business Journal reported the company said it had invested more than $150 million in the plant and created 200 jobs.

“However, the employees are now on “rolling furlough” in which they work 75 percent of their normal hours, and the plant has not yet begun the planned production of advanced batteries for electric vehicles GM is making,” the Journal reported.

LG Chem recently made headlines due to a Department of Energy report by its Office of the Inspector General, which confirmed a complaint that employees did anything but engineer batteries (intended for the Chevrolet Volt) as an $142 million federal grant had sought.

“LG Chem Michigan inappropriately claimed and was reimbursed for labor costs that did not support the purpose/objective of the grant, including costs for workers to perform volunteer activities, play games and watch movies during regular work hours,” the report said.

The report blamed both the company and department officials, arguing it failed to write adequate oversight protections into the grant it was awarded.

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