Michigan Approves Tax Breaks for Battery Manufacturers
The battle for car battery manufacturing is beginning to move forward, with GM predicting the Volt will arrive in 2010 as a 2011 model. In a bid to get a piece of the (potentially) $50 billion pie, Michigan’s Legislature has approved significant tax incentives for manufacturers of advanced batteries that will be used in hybrid and electric vehicles.
Before adjourning this month, the Legislature approved tax credits worth up to $335 million depending on the number of battery packs assembled in the state, production expenses and other factors. Earlier this month, fourteen U.S. technology companies and a national laboratory created an alliance, hoping to receive billions in federal aid to construct a plant to produce advanced batteries. U.S. companies are trying to keep other countries like Japan, Korea and China from dominating the advanced battery industry.
Michigan, which has long been the center of the automotive industry in the United States and a worldwide automotive icon, is struggling to keep itself at the center of all things auto. The Detroit three have suffered massive market-share losses in the last decade, losing out to German, Japanese and Korean transplants who have taken up residence in the southern states. “It is imperative that Michigan possess this technology and keep Michigan the center of car manufacturing,” said Michigan Senator John Pappageorge.
Source: The Detroit News