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DETROIT – State Representative Lee Gonzales (D-Flint Township) today announced that his plan to provide tax credits to support the domestic auto industry and make Michigan a leader in producing high-tech batteries for hybrid and electric vehicles has been signed by Governor Jennifer M. Granholm. Granholm signed the legislation in front of hybrid, green and electric vehicles at the 70,000-square-foot EcoXperience exhibit on display at the 2009 North American International Auto Show in Detroit.
 
"Today is a key step toward building a better Michigan by ensuring that the electric and hybrid automobiles of tomorrow will be built in our great state," Gonzales said. "With exciting options like the Volt ready to transform the industry, producing these batteries in Michigan will make it far easier to produce the vehicle here in Genesee County. These tax credits will not only strengthen Michigan automakers, but create and protect jobs for Michigan workers."
 
The initiative, which passed with overwhelming bipartisan support, is the first of its kind in the United States, and provides a potential $335 million in refundable tax credits to encourage companies to develop and manufacture advanced batteries and commercialize advanced battery technologies in Michigan. The plan also provides business tax credits in four categories for companies related to the manufacture of advanced batteries such as the ones used in electric plug-in vehicles, including the Volt. Specifically, the new law authorizes the Michigan Economic Growth Authority to provide refundable tax credits totaling up to $335 million over five years for battery pack assembly; research and engineering to support battery use in vehicles; engineering of advanced battery technologies; and capital investment for construction of battery manufacturing facilities.

"The lineup of products that our Michigan automakers have put out at this year's Auto Show demonstrates the pride and ability of Michigan workers," Gonzales said. "With this plan, we will ensure that Michigan workers will be making the next generation of green automobiles. I am pleased that the Governor signed this important legislation that will grow our economy and move Michigan forward."