MI SB0857

Michigan Economic Growth Authority authorized to enter into agreements providing tax credits to stimulate domestic commercialization and affordability of high-power energy batteries for hybrid, plug-in hybrid, and fuel cell vehicles.

Taxpayers manufacturing plug-in traction battery packs in Michigan for tax years 2010-2014 may claim credits of $500 for first 4 kilowatt hours plus $125 per additional kilowatt hour (capped at $2,000 per pack), with limits on total packs and credit amounts varying by year.

Vehicle manufacturers may claim credits of up to 75% of qualified vehicle engineering and battery integration expenses for tax years 2012-2013, with maximum $15,000,000 per year and $135,000,000 total authorization.

Integrated cell manufacturing facilities creating at least 300 jobs eligible for 50% credit on capital investment expenses (up to $25,000,000 yearly for 4 years, with up to 5 agreements allowed); large-scale battery facilities with 500+ jobs and federal loan guarantees eligible for 25% capital investment credit.

Credits claimed only with Michigan Economic Growth Authority certificate; unused credits may be refunded or carried forward 10 years; repayment provisions apply if taxpayers fail to meet agreement requirements.