MI HB5275

Authorizes Michigan Economic Growth Authority to enter agreements providing tax credits for plug-in traction battery pack manufacturing in Michigan from tax years beginning January 1, 2010 through January 1, 2015.

Establishes tiered tax credits for battery pack manufacturing: $500 base plus $125 per kilowatt hour (max $2,000) for 2011-2012 tax years; reduced to $375 base plus $93.75 per kilowatt hour (max $1,500) for 2012-2014 tax years, with annual unit caps and total credit limits ranging from $9 million to $43 million.

Provides up to 75% tax credits for qualified vehicle engineering expenses related to battery integration, prototyping, and launch costs for manufacturers producing at least 1,000 qualified plug-in electric vehicles, capped at $15 million per year and $135 million total.

Allows up to 50% tax credits for capital investment expenses in integrative cell manufacturing facilities (including anode, cathode manufacturing, and cell assembly) that create minimum 300 new jobs; limits to 5 agreements with maximum $25 million per year for up to 4 years.

Increases number of eligible integrative cell manufacturing facility agreements from 4 to 5 and extends deadline for authority to adopt authorizing resolutions from October 1, 2009 to March 1, 2010.