Dearborn, State Democrats Unveil Advanced Battery Incentive Plan

Amidst continued debate about what will be the savior of Michigan’s economy, Democrats in the legislature stood together across the state on Monday saying that part of the answer is advanced battery technology.

Current tax incentives for the emerging technology sector–much of which centers around supporting the burgeoning electric car business–are scheduled to be phased out as part of tax policy revisions recently approved by Gov. Rick Snyder and supported by Republicans in the legislature, who hold that the industry incentives are not paying off as automakers and supporters of the incentives once thought they would.

But state politicians speaking at on Monday afternoon disagreed, maintaining that jobs are being created, and that more and clearer incentives to both businesses and individuals are needed.

“The advanced battery sector is a rapid-growing part of the high-tech sector, and Michigan is uniquely situated to be one of the great, integral parts of that,” said Sen. Morris Hood (D-Dearborn). “We want to make sure that we’re open for business and allow businesses to come right here and give them all the incentive packages that we can and give them all the help we can so they can locate right here in Michigan.”

Rep. George Darany (D-Dearborn) a Dearborn native and former Dearborn City Council member, added that he believes advanced battery technology is the way to allow metro Detroit to continue to be at the forefront of automotive technology advances.

“With Ford Motor Company, Dearborn was one of the first in the nation to get America on wheels,” he said Monday. “We need to continue that innovation that sets our community apart from others in the nation. That innovation can be found in the advanced battery sector.”

The proposal, which legislators say they plan to introduce in the state House of Representatives as early as next week, includes several incentives:

• Tax credits for battery producers and manufacturers, including battery pack manufacturing, facilities construction and vehicle integration
• Income tax credits for people who buy an electric vehicle made in Michigan
• Tax credits for the purchase and installation of electric vehicle charging stations
• A $50-million economic gardening grant for electric vehicle and battery businesses, to come from the Michigan Economic Development Corporation

Dearborn Mayor Jack O’Reilly reaffirmed his support of electric vehicles earlier this year, boasting the city’s decision to to a new parking garage in east Dearborn, located behind the .

The advanced battery sector also has federal support, as evidenced by the more than $4 billion invested in the industry–including about $2 billion in Michigan.

But, added Congressman John Dingell on Monday, "Michigan has to do something to make sure that the federal efforts are sustained by vigorous efforts at the state level."

Legislatures speaking in Dearborn on Monday said that the proposal already has major Democrat support in the House and Senate. The next step is proving to constituents that the advanced battery sector is spurring job creation and bolstering local and state economies.

Rep. Dian Slavens (D-Canton) says that the industry has already created 6,600 jobs and attracted $3 billion in new investments.

Examples include A123 Systems, which opened a lithium ion automotive battery manufacturing plant in Livonia in 2010. And in July, the U.S. Council for Automotive Research awarded $9.62 million to Troy-based LG Chem Power for advanced battery development.

“These targeted incentives have created thousands of jobs and helped make Michigan a center for innovation and entrepreneurship,” Slavens said. “We cannot afford to stop nurturing and growing these industries.”