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]

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