A123Systems Gets $100 Million In Tax Credits From Michigan

A123Systems announced that it’s received $100 million in refundable tax credits from the state of Michigan.

However, it’s unclear what this means for A123Systems or Michigan. There is no announcement of a plan to build a factory in Michigan in the announcement, just that A123 picked out Livonia as one of the sites where it plans to build a production plant. That’s where A123 already has a research centre.

Greentech Media is calling it a downpayment, and points out that A123’s future relies on much more than this tax refund:

Despite the tax credits from the Michigan Economic Development Corp., the future of A123’s new factory in Livonia could hinge on a lot more money – $1.8 billion, to be specific.

That’s the amount of the loan A123 is seeking from the Department of Energy’s $25 billion Advanced Technology Vehicle Manufacturing Program (ATVM) to help it build its plants.

Additionally, the company just inked a deal with Chrysler, but if Chrysler goes bankrupt, it’s unclear what that will do to the deal.

This is the second big tax deal Michigan announced today. Earlier Johnson-Saft said it was getting $148 million from the state to renovate a factory to build batteries for a Ford and BMW hybrids.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.