Michigan tax incentives hope to spur advanced car batteries for hybrid and electric vehicles

Lawmakers hope that a recent tax incentive passed will spur the growth of car batteries for hybrid and electric vehicles to keep auto manufacturing centered here in the state.

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“It is imperative that Michigan possess this technology to keep Michigan the center of car manufacturing,” said Sen. John Pappageorge, a Troy Republican.

Before adjourning this month, the Legislature approved tax credits worth up to $335 million depending on how many battery packs are assembled here, production expenses and other factors. Granholm is expected to sign the legislation.

Lawmakers were motivated to act at a time auto demand has dropped due to the ailing economy and the credit crunch, which has made it tougher for some buyers to get financing. GM and Chrysler LLC recently secured a $17 billion lifeline from the federal government.

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