LANSING – In hopes of getting as much as $750 million of the $2 billion in federal stimulus money to promote advanced battery manufacturing, legislative leaders have launched an effort to expand the tax benefits the state offers for high tech battery makers.
The Senate Commerce and Tourism Committee expects to report SB 319 on Wednesday, which would expand the current number of Michigan Business Tax breaks offered to advanced battery manufacturers.
House Speaker Andy Dillon (D-Redford Twp.) and Senate Majority Leader Mike Bishop (R-Rochester) said Tuesday the proposal would boost the initial $335 million tax credit offered the manufacturers by another $200 million.
One part of the lobbying effort the two leaders, along with Senate Minority Leader Mike Prusi (D-Ishpeming) and House Minority Leader Kevin Elsenheimer (R-Bellaire), made last week in Washington, D.C., was to push for faster release of the stimulus money for the manufacturers.
Officials told the Senate Commerce panel on Tuesday that between four and eight manufacturing projects are expected to get approval nationwide for the $2 billion included in the federal stimulus measure to push advanced battery manufacturing. Currently, most industrial experts say the United States is severely behind China, India and South Korea in terms of developing and manufacturing advanced batteries that will be used in the main drive train in electric and advanced hybrid cars.
Michigan could see as many as four of the federal awards, Senate committee members were told. And Sen. John Pappageorge (R-Troy), sponsor of SB 319, said the measure puts the state is excellent position to develop some high paying jobs.
In a statement, Dillon said the proposal had to move because it was “imperative that we support Michigan’s workers and position our state as a leader in the advanced battery manufacturing industry.”
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