With hybrid electric cars and solar power technology gaining momentum, several states are vying to lure high-tech manufacturers and suppliers of plug-in batteries, solar cells and more to boost employment and tax revenues.
Michigan is a leader in corralling makers of advanced lithium-ion batteries that will let autos such as the Chevy Volt run solely on electricity for short jaunts. Using grants and tax credits, the state has persuaded advanced battery makers such as A123 and consortiums LG Chem-Compact Power and Johnson Controls-Saft to build plants in the state.
Ford and General Motors are also ramping up battery facilities in the state, retooling existing facilities to assemble plug-in cars, starting around year-end. When the plants are operating at full capacity -- by 2014 or so -- annual battery sales are expected to top $5 billion.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Among others in the mix: Indiana, which has landed EnerDel, a company that, for starters, will produce plug-in battery packs for Volvo. And California, which just persuaded Fisker Automotive to move the engineering skunk works for its plug-in-car program to the state from Michigan. Though Fisker plans to build its plug-in in Europe, landing its research and development operations is a coup for California.
California officials are also helping Tesla Motors, which plans to build high-end electric cars in a shuttered plant in Fremont, Calif., where GM and Toyota used to jointly build cars.
Meanwhile, sun-drenched Western states are duking it out to attract makers of solar cells.
Arizona is dangling income and real estate tax relief worth about $350 million in efforts to lasso a big chunk of the $4-billion-a-year U.S. solar cell industry, which is likely to double sales by the middle of the decade. The state beat out Austin, Texas, in luring China’s Suntech Power Holdings, the world’s largest maker of solar cells, to locate a manufacturing facility in Goodyear, Ariz.
The state has also landed the solar manufacturing arm of Michigan-based Tower Automotive and has persuaded NextLight Renewable Power, which is headquartered in San Francisco, to build a facility in Arizona. Look for Arizona to land two other Chinese solar manufacturers -- Trina Solar and Yingli. The latter currently has operations in California.
California also is using come-hither incentives and the draw of solid electricity contracts with in-state utilities, which are under state mandate to boost the amount of electricity they sell made from renewable resources.
To date, California has swayed First Solar and Stirling Energy SystemsStirling Energy Systems to build solar farms there and not in Arizona, where the firms are headquartered. Scottsdale-based Kyocera Solar, a subsidiary of Japan’s Kyocera Corp., chose San Diego for its new solar cell manufacturing plant.
Within a year, look for New Mexico to jump into the fray. It’s putting the finishing touches on economic incentives programs and a business development shop to recruit start-ups as well as lure existing solar industry manufacturers to the state.
-
How the 2025 Child Tax Credit Rules Impact Single ParentsTax Credits New changes to family tax credits, like the Child Tax Credit, will impact the eligibility of some households.
-
Five Social Security Myths That Can Cost You ThousandsBefore you collect Social Security benefits, make sure you don't believe any of these falsehoods.
-
Trump-Era Regulations Will Broaden Access to CryptoThe Kiplinger Letter The president wants to make the U.S. the leader in digital assets.
-
How to Adopt AI and Keep Employees HappyThe Kiplinger Letter As business adoption of AI picks up, employee morale could take a hit. But there are ways to avoid an AI backlash.
-
The Rise of AI: A Kiplinger Special ReportThe Kiplinger Letter Our special report looks at the opportunities and challenges of generative AI and how its rapid move into the mainstream is impacting every aspect of our lives.
-
Big Changes Are Ahead for Higher EdThe Kiplinger Letter A major reform of higher ed is underway. Colleges are bracing for abrupt change, financial headwinds and uncertainty.
-
AI-Powered Smart Glasses Set to Make a Bigger SplashThe Kiplinger Letter Meta leads the way with its sleek, fashionable smart glasses, but Apple reportedly plans to join the fray by late 2026. Improved AI will lure more customers.
-
Breaking China's Stranglehold on Rare Earth ElementsThe Letter China is using its near-monopoly on critical minerals to win trade concessions. Can the U.S. find alternate supplies?
-
Things that Surprise Business Owners When It’s Time to SellThe Kiplinger Letter When it’s time to retire and enjoy the fruits of growing their business, owners are often surprised by how tough it is to give up their baby!
-
What New Tariffs Mean for Car ShoppersThe Kiplinger Letter Car deals are growing scarcer. Meanwhile, tax credits for EVs are on the way out, but tax breaks for car loans are coming.
