LANSING — Legislation to ensure Michigan gets the best return on its investments has been approved by both legislative chambers and sent to the governor, said sponsor Sen. Mike Kowall, R-White Lake.
“If we’re going to offer job providers incentives for investing in Michigan, then we need to make sure we’re getting the biggest bang for our buck possible,” said Kowall, chair of the Senate Economic Development Committee. “My measure will help guarantee that credits given to businesses result in jobs created.”
Senate Bill 855 increases the job creation requirement from 500 to 700 jobs for the state’s battery credit. The measure also includes a “claw back” provision that can recoup $65,000 for each job the taxpayer fails to create.
Currently, Townsend Energy Solutions, LLC is seeking a battery credit for plans to renovate and redevelop the Ford Wixom plant near I-96. Townsend, originally formed as Townsend Capital in 1975, is involved with Dow in the Dow Kokam joint venture. The company plans to make a $238 million capital investment in the venture.
The Wixom plant will be used to manufacture and develop automotive batteries. Townsend projects the redevelopment to directly create 875 jobs.
SB 855 now awaits Gov. Rick Snyder’s signature for passage into law.