Michigan governor proposes state income tax credit of hybrid buyers
At meeting this week at Michigan State University on "green collar job" creation, Governor Jennifer Granholm floated the idea of state income tax credits for residents that buy hybrid or electric cars. While the IRS and a variety of states already offer similar incentives, it's unlikely that Michigan will be able to offer anything unless they stipulate that the cars must be built in the state. In that case the number of qualifying vehicles would be ... ZERO. At this time none of the available hybrid vehicles on the market are assembled here. GM's hybrids are built in Texas, Kansas and Mexico. Ford Escapes come from Kansas and the soon-to-be-discontinued Chrysler SUVS come from Delaware. As for the import brands, while Toyota builds Camry's in Kentucky, most of the rest come from Japan. The only such car planned for Michigan production is the Chevy Volt. With a rapidly declining tax and manufacturing base it's not clear how the state could afford any kind of breaks and what economic benefit it would bring to the state if they did. Certainly there would be an environmental benefit, but that doesn't help if you don't have the cash to pay.
[Source: Detroit News]
Reader Comments (Page 1 of 1)
!!D 7:16PM (10/24/2008)
Correction to "Ford Escapes come from Kansas." This doesn't affect the story any, but just to be accurate: Ford's Kansas City assembly plant is in Claycomo, MO.
See http://media.ford.com/newsroom/release_display.cfm?release=16755
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James Sonne 9:32PM (10/24/2008)
Double-yoo, tee, eff.
Michigan State public school buildings are literally falling down, being condemned, jobs are fleeing to other states and countries, taxes are soaring, roads are crap. And yet they find money to give away money to people that can afford to buy a hybrid vehicle? I think I need to send Gov. Granholm a copy of SimCity!
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Collin 11:32PM (10/24/2008)
Pointless tax break. Does not promote green driving at all. If it were actually for the sake of saving gas, it would be written so that cars that get over XX mpg receive a tax credit. By this rule, a 18 mpg full size hybrid SUV will receive a tax credit but a 40+mpg, non hybrid economy car wouldn't. If Michigan was a main producer in hybrid power systems it would make since but we aren't. Reason #7087 why I'm heading out of Michigan when I get my degree.
Lad 1:45AM (10/25/2008)
The good governor needs to spend some time at the "Better Place" web site and view the videos: I suggest the series of three 10 minute presentations titled: Transforming Transportation Globally - Part 1, 2 and 3.
Hopefully the governor will follow the ideas in the videos and try to get Detroit involved. The people in Michigan need jobs and building electric cars and batteries and the electrical plug-in infrastructure is the way to put our people to work timely.
http://www.betterplace.com/press-room/videos/
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Ben 11:37AM (10/27/2008)
The idea wouldn't be bad, except GM's head, a few years back killed Michigan's sole electric car manufacturing facility, because "at the time" he could make more money building Hummers (and look at where it got us!). I say build the "ball field" and at least we can say to potential players we were waiting for you...
BTW I also like the idea of giving tax breaks to cars with higher mileage. I've gotten an average of 82 mpg on a 100 mile freeway trip. Unfortunately the car (the 2002 Insight) was discontinued...
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pixlie 10:44PM (10/25/2008)
Am I the only one who has noticed the governor looks exactly like the lead singer of 80s band the Primitives?
Even has the mole in the same place.
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Domenick Yoney 11:28PM (10/25/2008)
Maybe not exactly...
http://www.crashsite.org/bandmember1.htm
tankd0g 1:24AM (10/26/2008)
Enough with the corporate socialism for automakers!!!
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