Michigan Senate approves 4th battery tax credit

By AP

Lansing, MI – The Michigan Senate has approved a $100 million tax credit for the company that will supply batteries for the Chevy Volt plug-in hybrid car.

State economic development officials two weeks ago awarded the refundable tax credit to Korean-based LG Chem and a U.S. subsidiary, Troy-based Compact Inc.

But the credit also needs legislative approval by May 30 to take effect.

The Republican-controlled Senate voted 36-0 Thursday to send the
legislation to the Democrat-led House.

The credit would be the fourth awarded to battery manufacturers that open a plant in Michigan and create at least 300 new jobs.

Each company can claim up to $25 million over four years starting
in 2012.

The Senate also voted to increase tax credits for vehicle engineering to support battery integration.