Governor Whitmer Signs $150M Advanced Battery and Clean Tech Manufacturing Tax Incentive

LANSING, MI — Governor Gretchen Whitmer signed bipartisan economic development legislation Thursday at a manufacturing facility in Wayne County, establishing the Michigan Clean Tech Manufacturing Tax Credit (House Bill 5821) to secure advanced battery and renewable component manufacturing.

Statutory Incentive Structure and Clawback Provisions

The enacted measure provides $150 million in transferable tax credits over four fiscal years through the Michigan Strategic Fund (MSF). Qualifying manufacturers must invest a minimum of $50 million in capital infrastructure, create at least 250 permanent full-time jobs paying at or above 120 percent of the regional median wage, and commit to local supply chain procurement within the Great Lakes region.

The law includes strict statutory clawback provisions requiring companies to return 100 percent of disbursed credits if audited job creation and wage benchmarks are not maintained for seven consecutive years.

Labor and Industrial Competitiveness

United Auto Workers (UAW) leadership and the Michigan Chamber of Commerce supported the legislation, noting that state-level manufacturing incentives are crucial to retaining automotive engineering talent and domestic battery manufacturing amidst shifting federal tax credits.

Governor Whitmer noted that the state has attracted over $20 billion in private clean energy investments since 2022, solidifying Michigan's position as a regional clean tech hub.

Application Portals and Program Deployment

The Michigan Economic Development Corporation (MEDC) will open initial corporate incentive applications on October 1, 2026.