HB 5469 Summary

• Establishes tax credits for manufacturers of plug-in traction battery packs in Michigan for tax years 2010-2014, ranging from $500-$2,000 per pack depending on kilowatt hour capacity, with total credits capped at $40-$43 million per year and maximum 20,000-40,000 units per year.

• Allows up to 75% credit for vehicle engineering expenses related to battery integration and vehicle development for tax years 2012-2014, capped at $15 million per year and $135 million total, available only to manufacturers of at least 1,000 qualifying vehicles.

• Provides credits equal to 50% of capital investment expenses for integrative cell manufacturing facilities with anode, cathode, and assembly operations, limited to 5 agreements with maximum $25 million per year for up to 4 years, requiring at least 300 new jobs.

• Establishes credits for large-scale battery and power management system manufacturing facilities (500 kilowatts to 100 megawatts) at 25% of capital investment expenses, limited to 1 agreement with maximum $25 million per year for up to 4 years, requiring at least 500 new jobs and federal Department of Energy loan guarantees.

• Creates credits for advanced lithium ion battery pack manufacturing from 2012-2016 with two tiers: higher credits for $250 million investment and 1,000 jobs, or lower credits for $200 million investment and 300 jobs, with repayment provisions if taxpayers fail to meet agreement requirements or relocate facilities out of state.