Gov. Gretchen Whitmer delivered her annual State of the State address on Jan. 24, where she introduced proposals to lower costs, expand economic development, continue record investments in education from preschool to college, and more. Standout announcements for the MICHauto investor community include:
New Initiatives for the State’s Economic Development
During her address, Whitmer expressed Michigan’s dire need to “win the race for the future” by upgrading its bipartisan economic development toolkit.
Among this toolkit is an R&D Tax Credit to encourage innovation while lowering costs for businesses in the state. Michigan is the only Great Lakes state with no R&D incentive like this. Whitmer also announced the Innovation Fund to invest in early-stage startups and help launch new Michigan-based companies. This will help build the infrastructure for innovation so founders can start and build their companies in Michigan.
Perspective: An R&D tax credit that mirrors the federal tax credit and has wide-spanning qualifications is necessary to compete within the Great Lakes region, country, and global marketplace. This has been a MICHauto priority for many years, and MICHauto applauds the administration for including this priority in the address.
On Hybrid and Electric Vehicle Rebates
Whitmer also discussed the MI Vehicle Rebate, a new state tax rebate designed to lower the cost of a new electric, hybrid, or traditional vehicle, saying it could save Michiganders up to $10,000 when combined with federal incentives. Michiganders will receive the tax rebate on new vehicles under four categories:
- $2,500 on a new battery electric or hybrid vehicle manufactured in a facility where an automotive union represents the workers.
- $2,000 on a new battery-electric or hybrid vehicle.
- $1,500 on a new internal combustion vehicle in a facility where an automotive union represents the workers.
- $1,000 on all other new internal combustion vehicles.
Perspective: The clean energy and electric vehicle transition is happening. Therefore, Michigan must be a leader in the technology development, manufacturing, and adoption of EVs. The Chamber and MICHauto applaud the MI Vehicle Rebate effort, which will encourage ease and balanced supply and demand during this critical transition.