MichAuto > Policy Priorities

Policy Priorities

2024 Automobility Day at the Capitol Meeting

2025 MichAuto Policy Priorities

2025 promises to be another year full of heady challenges and unique opportunities for the automotive industry in Michigan. At both the federal and state levels, new political realities will alter policies affecting the industry in a moment that is already fraught with disruption and change.

As of January 2025, almost 1.2 million jobs – or a fifth of Michigan workers – are employed directly or indirectly by the auto industry. Michigan is home to nearly a fifth of all North American auto production, the highest concentration of engineering talent, and more than 1,000 independent auto suppliers. The health of this most vital industry also has far-reaching implications for the oft-discussed population crisis facing our state, so MichAuto will continue in 2025 to advocate for strategically focused policies that grow not just our industry but our people too.

There is a lot at stake for Michigan and its signature industry, of which policy greatly influences. Given these dynamics, here are the advocacy actions MichAuto will pursue in 2025 to ensure the U.S. auto and mobility industry remains in a healthy and globally competitive position:

At the State Level:

Incentives

MichAuto will advocate for user-friendly and broad business attraction and retention incentives, including reforms to or replacement of programs like the SOAR Fund, to promote the growth and retention of existing businesses and to attract new opportunities across Michigan.

Tax and Regulatory Environment

MichAuto will support a low-tax, limited-regulation framework to encourage investment and job retention and foster strong business confidence in Michigan.

Talent and Workforce Development

MichAuto will promote workforce development initiatives like the Going PRO Talent Fund and advocate for increased Pre-K-12 funding and reforms to better prepare Michigan’s current and future workforce. Further, MichAuto will support the ongoing funding of MichAuto’s High-Tech Talent Initiative, which funds vital programs like Square One Robotics in public schools across the state.

Road Funding

As the debate over rebuilding Michigan road infrastructure continues, MichAuto will advocate for sustainable road funding, including thoughtful policy on road usage charge revenue options and support the build-out of smart and connected roadways.

At the Federal Level:

Trade

MichAuto will monitor and inform the debate in Washington on the effectiveness of tariffs in driving the onshoring of supply chains. To this end, MichAuto will endeavor to organize the industry to use its voice as the domestic USMCA public consultation period opens in 2025.

Domestic Industry Resiliency

MichAuto will advocate for important industry policies that have helped reinvigorate domestic manufacturing, including the preservation of certain Inflation Reduction Act (IRA) provisions such as the advanced manufacturing production credit known as 45X. To this end, MichAuto will also leverage its unified industry voice to urge the federal government to honor grants and loans related to the IRA, the CHIPS and Science Act of 2022, and the bipartisan infrastructure law of 2021 that have already been appropriated and made to companies here in Michigan. We will also continue to champion bipartisan passage of much-needed federal permitting reform.

R&D

MichAuto will push for the revival of federal-level R&D expensing, accelerated depreciation of assets, restoration of a pro-growth interest deductibility standard, and extension of full expensing and general restoration of business tax provisions scheduled to sunset in 2025.

Immigration

MichAuto will champion federal immigration reform that will attract more high-skilled workers to Michigan. The health of our state’s R&D, engineering, and high-tech sectors depends heavily on foreign-born graduates, and we will continue to support policies that keep as many of these workers here and attract more to come to Michigan.

2024 Detroit Auto Show Auto Caucus Reception Feature

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