Article: WEEK ON THE WEB.(NEWS)

State Senate OKs 4th battery tax credit

The state Senate has approved a $100 million tax credit for Korean-based LG Chem and a U.S. subsidiary, Troy-based Compact Inc., which will supply batteries for the Chevy Volt plug-in hybrid car. The credit needs full legislative approval by May 30 to take effect, the Associated Press reported.

The credit would be the fourth awarded to battery manufacturers that open a plant in Michigan and create at least 300 new jobs. Each company can claim up to $25 million over four years starting in 2012.

The Senate also voted to increase tax credits for vehicle engineering to support battery integration.

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