Under the 2007 PA 36, amending section 434, the Michigan Economic Growth Authority is authorized to provide tax credits to stimulate the domestic commercialization and affordability of high-power energy batteries, and to help insure that job growth from battery technology and commercial production develops alongside advanced vehicle technology development and renewable power generation initiatives both within and outside the transportation sector. House Bill 4504 proposes to expand the availability of Michigan Business Tax credit agreements to address this industry. If the bill passes, more credits could be granted and more subsidies would be offered. Also, a taxpayer may claim a credit equal to 50% of the capital investment expenses for any tax year for the construction of an integrative cell manufacturing facility if the taxpayer will create not less than 300 new jobs in this state.. The opponents of this legislation may include the traditional battery-manufacturing corporations, the vehicle industrial companies with the application of low-power energy batteries. The transition to producing high-power energy requires both the capital investment and the technology staff, which will absolutely increase the cost of the productions. In fact, this issue not only annoys the battery industry, but also will affect the whole industrial chain that producing or utilizing the traditional batteries, for example, some old-fashioned vehicles, or other electric appliances. If the transition process can't be conducted within a certain time, some links on this industrial chain must face the loss. In addition, the amended legislation set up the quotas for the number of traction battery packs, which is obviously limits the corporation's producing scale.
The proponents among the stakeholders may comprise the producers and consumers of hybrid or plug-in hybrid battery-electric, and fuel cell vehicle applications, the organization that devote to expanding the employment opportunities, and the environmental protection entities that ask for cleaner air and less solid waste. Usually, high-power energy batteries can provide higher effectiveness and last for longer service life. Correspondingly, there will be less environment impacts and energy costs per power unit. With the advance of technology, high-power energy batteries have the potential to consume less raw materials and less variable and fix costs. Another important effect is to create more job positions by developing the new industry and its upstream and downstream industries.
This amended legislation was introduced in March 2009, when the economic crisis just hit Michigan adversely. In order to revitalize the market and prevent the escalating trend of unemployment rate, the state assembly may be inclined to pass this amend. However, this amend only provides the guidance for next five years. For a long-term consideration, many corporations and organizations may worry about the following policies and strategies after 2015.