IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jul 2009 | Removal date: 30 Dec 2011
Still in force

Tax or social insurance relief

In 2009 the state of Michigan provided a subsidy package to A123 Systems for advanced battery manufacturing. The package included up to $100 million in Michigan Business Tax Battery Credits; up to $25.3 million in MEGA tax credits; two $10 million Centers of Energy Excellence grants; a $4 million low-interest forgivable loan; a $2 million grant; and $1 million in Southwest Michigan Community Alliance job training assistance.
 
The company also stood to receive additional subsidies by virtue of being located in a Renaissance Zone, but the value cannot be determined. In addition to the state subsidies, A123 received a $249 million federal Recovery Act grant. The larger state subsidies are listed separately in the main Subsidy Tracker data under the individual program names.
 
In 2012 the company filed for bankruptcy and later sold its assets to the Chinese company Wanxiang Group. Michigan officials took the position that the tax credits could not be transferred to Wanxiang. 
 
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

464 Accumulators, primary cells & primary batteries; parts
8506 Primary cells and primary batteries.
850610 Manganese dioxide
850640 Silver oxide
850650 Lithium
850660 Airzinc
850680 Other primary cells and primary batteries
850690 Parts
8507 Electric accumulators, including separators therefor, whether or not rectangular (including square).
850710 Leadacid, of a kind used for starting piston engines
850720 Other leadacid accumulators
850730 Nickelcadmium
850740 Nickeliron
850750 Nickelmetal hydride
850760 Lithiumion
850780 Other accumulators
850790 Parts

Please report this page in case you detect an inaccuracy in its content.