LANSING – Democrats say they will push to keep tax incentives for the advanced battery industry that Republicans voted to phase out over the next four years.
In a series of news conferences around the state Monday, legislative Democrats said they plan to introduce legislation continuing the incentives that has proven to create local jobs and spur economic growth.
“We can not afford to stop nurturing this growing industry,” said Rep. Barb Byrum (D-Onondaga).
At the Capitol, Senate Minority Leader Gretchen Whitmer (D-East Lansing) and Byrum said it is wrong for Governor Rick Snyder and Republicans to end tax breaks for an industry that has been a bright spot in the economy.
“It is a serious mistake that puts jobs, Michigan business and our local communities at risk,” Whitmer said.
Whitmer said this is the type of tax policy needed in the state, and not the kind that Republicans have put forward “that hasn’t yielded a single job in Michigan.”
Earlier this year, Republicans eliminated the Michigan Business Tax, and with it, tax credits and incentives like the advanced battery sector enjoyed. That was done, they said, to make it fairer and to keep the state from picking winners and losers.
But Byrum said these targeted incentives have created jobs and made the state a center for innovation and entrepreneurship.
“We know this is the future of Michigan’s economy,” she said.
Republicans want to avoid special carve outs in the tax code, but businesses are welcome to come before the Appropriations Committee and make their case, said Ari Adler, spokesperson for House Speaker Jase Bolger (R-Marshall).
“We are trying to get out of the business of deciding what the next great innovation is going to be,” Adler said. “It’s not government’s role.”
The planned Democratic legislation would provide tax credits for battery producers and manufacturers and income tax credits for people who buy Michigan-made electric vehicles. Funds for the incentives would come from existing funds at the Michigan Economic Development Corporation in the form of a $50 million economic gardening grant.
A number of environmental groups announced they have joined together into a coalition called Built by Michigan. The coalition is supportive of incentives for buying and installing electric vehicle charging stations, which is another piece of the legislation.
“Michigan has the workforce and technological know-how to become a global leader in today’s clean energy economy,” Susan Harley of Clean Water Action said in a statement. “It is vital that our state and federal lawmakers make sure that Michigan remains on the cutting edge of developing and manufacturing advanced batteries and electric vehicles, because other states and countries are chasing right behind us.”
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