LANSING – Legislation that would allow state economic development officials to offer more Michigan Economic Growth Authority tax credits this year while mandating greater transparency was unanimously approved Wednesday by a Senate committee.

Meanwhile, a House committee reported legislation designed to lure a major advanced battery manufacturing operation to the site of the shuttered Ford Motor Company plant in Wixom.

Officials from Wixom, Ford, Texas-based Xtreme Power and California-based Clairvoyant Energy visited the Senate Commerce and Tourism, House New Economy and Quality of Life and Senate Finance committees, urging passage of the battery credit and overall MEGA extension.

The bills reported by the Senate Finance Committee (SB 773 , SB 774 ) would allow MEGA to issue another 85 credits this calendar year. MEGA already has used up nearly all of the 400 it was allowed to issue this year. Beginning in 2010, MEGA could issue up to 300 credits with the possibility of issuing another 85.

They also contain language similar to bills (SB 70 , SB 71 ) previously passed by the Senate and pending on the House floor that put in place tougher reporting requirements about what information MEGA must provide to the Legislature.

Sen. Nancy Cassis (R-Novi), the Finance Committee chair, is pushing for language that would only allow a company to receive a tax credit if it also had an incentive offer from another state. Officials from the MEDC and other committee members opposed the idea, and the committee unanimously voted to strip that language out of the legislation, but Ms. Cassis said the conversation on the issue would continue.

MEDC officials and committee Democrats also oppose the bills’ requirement that for a company to be eligible for a high-tech credit it must spend 15 percent of its total expenses on research and development.

Still, McBryde said the two sides were nearly in full agreement on the legislation, and Cassis said she thought the remaining obstacles could be overcome.

“We still have some issues that we have to resolve before we can say we have a deal,” said James McBryde, Michigan Economic Development Corporation vice president for government affairs. “We do not have a deal yet.”

Said Cassis: “I think we have worked out negotiated compromises here that are going to stand the state in good stead.”

The proposal from Xtreme Power, Clairvoyant Energy and Oerlikon Solar would create a “renewable energy park” at the site of the Ford Wixom plant with the goal of beginning production in fall 2011. The total number of direct jobs was estimated at more than 4,000. The primary item made would be new high efficiency, high powered batteries.

The proposed tax credit package for the energy park is a $100 million refundable tax credit beginning in 2012 as well as MEGA credits, brownfield credits and renaissance zone designation.

“If we get these, then we will be here in Michigan,” Clairvoyant CEO David Hardee told the Finance Committee.

Carlos Coe, president and CEO of Xtreme Power, said the credit is key to making Michigan’s effort to win the project competitive.

Meanwhile, the House New Economy and Quality of Life Committee unanimously reported a bill that would expand the state’s tax credits related to advanced battery manufacturing, which is slated to lure the companies to the Wixom facility.

HB 5275 would increase the number of Michigan Economic Growth Authority credits from four to five and raise the threshold in value for the credits to $500 million.

MEGA could authorize the credits beginning October 1 through March 2010, but they wouldn’t apply until the 2012 tax year.m

Lawmakers increased the number of these credits back in May (SB 466 , PA 26).

Chair Rep. Ed Clemente (D-Lincoln Park) said along with the MEGA credit and legislation dealing with tax credits for photovoltaic energy development and manufacturing (HB 4523 ), the companies will be in the position to receive some funding from the U.S. Department of Energy.

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