Ann Arbor battery maker Sakti3 requests $1.5M tax abatement
City Council will hold a public hearing Monday on a $1.5 million tax abatement request for Ann Arbor-based startup battery firm Sakti3: $151,433 for real property improvements and $1,374,861 for new personal property.
If approved, the abatement would reduce the firm’s annual tax bill by $23,200 for each of the three years in the recommended period.
In addition to a reduction in taxes, the company is expected to create five new jobs and retain 15 existing positions as a result of the project, according to city documents. The company purchased additional equipment to accommodate the growth.
Sakti3, a University of Michigan spinoff, is developing next-generation solid-state lithium-ion batteries for electric vehicles and other uses.
The company has attracted venture capital from high-profile investors such as Silicon Valley-based Khosia Ventures, the Farmington Hills office of global investment firm Beringea and General Motors Ventures, the automaker’s investment arm.
The company is headquartered at offices on Victors Way in Ann Arbor, about 1/2-mile west Eisenhower Place near Eisenhower and Boardwalk.
Among Sakti3's backers is the Michigan Economic Development Corp., which gave the company a $3 million Centers of Energy Excellence grant and a $2.3 million tax credit tied to hire 112 workers over several years as the company continues to transition into battery production.
Comments
ruminator
Tue, May 8, 2012 : 12:23 p.m.
So, part of the billion dollar tax gift from Snyder and the rethuglicans isn't enough? If I improve my home thus creating or preserving jobs, my property taxes go UP forever. A business does the same and it wants a reduction in taxes? It's time to say no to more gifts.
Joel A. Levitt
Tue, May 8, 2012 : 11:38 a.m.
I think the abatement should be granted, provided that should Sakti3 fail to increase the number it employs by five it will pay the city the amount that it would have otherwise paid, and provided that the city will be a first creditor.
Mike D.
Tue, May 8, 2012 : 4:20 a.m.
Where are you getting your info? Outdated Google results? Sakti3 moved from Victors to Eisenhower Place a year ago. The abatement would be for all they money they spent on the Eisenhower Place facility.
grimmk
Tue, May 8, 2012 : 12:56 a.m.
I want a tax abatement. I work at a min wage job. That extra $50 they take out could really help me. And yes, I know it helps others, but it's a part time min wage job!
xmo
Mon, May 7, 2012 : 10:45 p.m.
Is this another "GREEN" Company that will go broke? Like Solyndra, Evergreen Solar Inc., SpectraWatt,, and Ener1?
AMOC
Tue, May 8, 2012 : 2:53 a.m.
In a word, xmo, probably. Sakti3 is an "advanced battery" company, one of 4 or 5 attracted to Michigan by special grants, loans and tax abatements provided by MEDC under Gov. Granholm and the EPA's pressure on the auto industry to produce electric vehicles. Consumer purchases of recent electric vehicles have been much lower than expected due to the very high cost of electric and hybrid-electric vehicles, slow recharge times and the very limited range of purely electric vehicles.
Arborcomment
Mon, May 7, 2012 : 10:28 p.m.
Could probably pick up bargains on previously purchased equipment at A123 or Solyndra.
drewk
Mon, May 7, 2012 : 9:32 p.m.
Seems real fair to all of the other businesses in Ann Arbor that pay their taxes. NOT.
bobfromaccttemps
Tue, May 8, 2012 : 5:01 p.m.
If the other companies want to invest some money and a couple of hours on paperwork they can do this also.