Michigan House Republicans
Rep. Hall spearheading economic development opportunities for Michigan with new plan
RELEASE|December 2, 2021
Contact: Matt Hall

Proposal positions state as leader to produce cutting edge technology

A new plan from state Rep. Matt Hall will move Michigan forward with production and jobs while helping to address shortages that have stifled industries throughout the country.

House Bill 5601 establishes a research and development tax credit for semiconductors, advanced automotive projects such as electric battery technology, and life sciences.

A global semiconductor shortage has virtually dried up the supply of microchips used to manufacture numerous different machines. The auto industry has been particularly hampered by this shortage, and manufacturers have faced production delays and shutdowns as they wait for chips they need to finish cars on the assembly line.

Electric vehicles have roughly double the average number of chips as non-electric cars, meaning the brakes have been applied even firmer to their production. Recent estimates put the cost of the shortage for the auto industry alone at $210 billion.

“There are not many new cars on the lot. They’re all at the plants waiting to be completed,” Hall said. “This a major national security issue and it has slowed crucial sectors to a standstill. We’ve learned through this situation that a domestic semiconductor industry in the United States is vital, and this plan makes it clear that our state is going to lead on this issue.

“Michigan was the birthplace of the automobile. It can make sure these automobiles are able to roll off the assembly line and get to consumers with this plan.”

Hall pointed to production successes in southwest Michigan and the need to be proactive in expanding on that success.

“We’ve seen what the Pfizer facility has been able to do with vaccine production in Kalamazoo,” Hall said. “Michigan has shown its quality in this area, and this legislation allows us to be more competitive and use our workforce to produce products that are pivotal to our economy.”

HB 5601 was referred to the House Tax Policy Committee, which Hall chairs, for further consideration.

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