Directive will harness recently signed Inflation Reduction Act to build on Michigan’s mobility and energy leadership, boost Michigan’s competitive edge, create and protect hundreds of thousands of good-paying manufacturing jobs

LANSING, Mich. – Today, Governor Gretchen Whitmer signed an executive directive to create jobs in Michigan by taking advantage of the resources in the newly passed Inflation Reduction Act (IRA). The governor is focused on growing the economy and creating good-paying jobs, and this directive will ensure state departments and agencies harness every available tax credit and other opportunities in the IRA to build on Michigan’s manufacturing strengths, advance its energy and mobility leadership, and empower workers to succeed.

“Today, I am building on my actions to create good-paying jobs, bring supply chain home, and build on our state’s industrial strengths. The Inflation Reduction Act will create and protect millions of good-paying manufacturing jobs across the nation, and I am taking action today to ensure that Michigan is ready to fully harness its benefits,” said Governor Whitmer. “With this directive, we will use the IRA to build on our legendary manufacturing heritage, unleash the potential of our people and businesses, and make Michigan even more competitive against other states in the mobility and electrification sectors. I am proud of the work we have done to bring home a $7 billion investment from GM building electric vehicles and batteries and a new facility from high-tech manufacturer SK Siltron bringing the semiconductor supply chain from China to Michigan, and today’s executive directive will build on these efforts. Together, we can create and protect hundreds of thousands of good-paying jobs here in Michigan, building and retooling factories, surging clean energy production, and doing what we do best—putting the world on wheels. The IRA’s job-creating investments will build on our momentum, keeping unemployment low and economic growth high. I will work with anyone to make sure Michiganders can see and feel the benefits of the IRA.”

“The Inflation Reduction Act will help us grow our economy, create jobs, move supply chains back to Michigan from overseas, and strengthen our response to the climate crisis,” said Lt. Governor Garlin Gilchrist II. “Today, Governor Gretchen Whitmer and I are taking action to ensure state government departments and agencies are prepared to use this historic opportunity to move Michigan forward and build on our economic momentum. This executive directive will institute an across-government, all-hands-on-deck approach to help us spur manufacturing growth, increase clean energy generation, and create green jobs. It will help us deploy every dollar available under the IRA to put Michigan in the lead and make us competitive for investments that transform whole regions. Governor Whitmer and I are committed to investing in our communities, growing our economy, and standing tall for Michiganders.”

Create Jobs Executive Directive

Over the last three years, Michigan has received multiple awards for its manufacturing capabilities and was recently named the #1 state in the nation for energy sector job growth. Last December, Governor Whitmer worked across the aisle to equip Michigan with powerful economic development tools to win transformational projects over other states. This bipartisan collaboration has already paid off, bringing over 10,000 jobs and billions in investment to Michigan in less than a year, including massive projects from firms across a range of the state’s most iconic industries. Michigan’s research institutions, innovative businesses, and hardworking people have powered the state’s strong economic growth.

The IRA will build on this momentum, helping Michigan build and retool factories to manufacture electric vehicles, batteries, solar panels, and so much more. It will surge clean energy production, drive down gas prices, reduce reliance on foreign oil, and create millions of jobs. Today’s executive directive will deploy every available resource from the IRA to create good-paying jobs for Michiganders and make Michigan competitive for investment over other states.   

The executive directive includes the following provisions:

    The Michigan Economic Development Corporation (MEDC) should continue engaging with the private sector to attract opportunities for companies in electric vehicle, clean energy, and advanced manufacturing to invest in Michigan.

    The Michigan Department of Labor and Economic Opportunity (LEO) should identify opportunities to support workforce development in the state geared toward the needs of the electric vehicle; clean energy; clean fuels, like hydrogen; and advanced manufacturing sectors.

    Departments and agencies should work with the state legislature, congressional delegation, local governments, research and education institutions, and the private sector to leverage all available federal dollars and position Michigan as the national leader in electric vehicles, domestic energy, advanced manufacturing, and climate action.

    Departments and agencies must conduct outreach to Michigan-based businesses and geographically disadvantaged businesses to ensure they are aware of opportunities for federal funds as required by previous executive directives issued by Governor Whitmer.

    Departments and agencies should use resources from the IRA to help the Department of Environment, Great Lakes, and Energy (EGLE) implement the MI Healthy Climate Plan.  

    The Michigan Infrastructure Office (MIO) should identify opportunities to utilize the IRA to maximize resources Michigan has already received under the bipartisan Infrastructure Investment and Jobs Act (IIJA).

The full executive directive can be found here.

Inflation Reduction Act Background

    Lowers prescription drug costs for seniors: Out-of-pocket costs for seniors on Medicare will be capped at $2,000 a year, saving roughly 1 million people about $1,000 each year. Insulin costs for Medicare are capped at $35 per month.
    Lowers health care costs: Extends subsidies under the Affordable Care Act for 13 million people, saving them an average of $800 per year on premiums. Prevents 3 million people from losing their insurance.
    Lowers energy costs: Helps American families switch to cheaper, cleaner electricity, cutting their bills by $500 a year. All homes, even those who do not make the switch to clean energy, will see lower prices. Offers middle-class Americans tax credits for buying electric vehicles made in North America.
    Creates American jobs: Builds and refurbishes factories, creates millions of good-paying manufacturing jobs, and helps America build electric vehicles, batteries, solar panels, and so much more.
    Cuts the deficit by $300 billion: A fiscally-responsible investment to secure America’s financial future.  
    Ensures billion-dollar-corporations pay more than $0 in income taxes: Enacts a 15% minimum tax for corporations that make over $1 billion in annual profits, many of whom currently pay 0%.
    Invests in communities: Funds infrastructure improvements and projects to reduce air and water pollution, protect natural resources.

Governor Whitmer’s Fiscally-Responsible Leadership

Since taking office, Governor Whitmer has signed 4 balanced, bipartisan budgets. She has paid down nearly $14 billion in debt, not raised taxes on working families by a dime, cut taxes for small business owners, and enacted economic development legislation empowering the state to compete for billions in investment and tens of thousands of jobs. Thanks to the governor’s strong, fiscally-responsible leadership, Michigan received its first credit rating upgrade from Fitch, a national financial firm, in a decade.

Governor Whitmer’s Investments in Manufacturing & Energy

Since the governor took office, Michigan has announced 25,000 good-paying auto jobs, including 10,000 in 2022 alone. According to Bloomberg, Michigan is in the midst of a “manufacturing boom,” and is the #1 state for energy job creation.