HB 6115 Summary

• Establishes tax credits through December 31, 2010 for manufacturers of plug-in traction battery packs in Michigan, with credits ranging from $500-$2,000 per pack depending on kilowatt hour capacity and tax year (2011-2014).

• Creates credits for vehicle engineering expenses related to battery integration (up to 75% of qualified expenses, capped at $15 million annually) and for advanced lithium ion battery pack manufacturing (up to $26-$42 million depending on capital investment levels and job creation requirements).

• Provides credits for capital investments in integrative cell manufacturing facilities (up to $25 million annually for 4 years) and large-scale battery manufacturing facilities with federal loan guarantees (up to $25 million annually for 4 years).

• Modifies Section 460 to provide tax credits to service station owners for converting fuel delivery systems to E85 fuel or qualified biodiesel blends, with a 30% credit capped at $20,000 per year and $1 million total annually through December 31, 2010.

• Credits are contingent on written agreements with the Michigan Economic Growth Authority and require a review board for cell manufacturing credits; excess credits may be refunded or carried forward 10 years.