A few years ago, the battery manufacturing plants for LG Chem were going to make Michigan "the world capital for advanced batteries" while helping to "transform our economy."

In Holland, Mich., it was said it would "spur further job creation and economic development in the region." A company official said the state help "further validates the viability of our technology and capability."

But the predictions never materialized. 

After a federal investigation, LG Chem is being made to repay $842,000 from a federal stimulus grant after it was discovered employees were paid to watch movies, play games or volunteer at local non-profits, MLive reported.  

Michigan had offered up to $125 million in refundable state tax credits for the battery cell company in Holland.

Tax credits and subsidies for LG Chem were predicted to create hundreds of jobs and hundreds of millions of dollars in new investment. But the company generated more press releases (nine) than battery cells (zero).

“Michigan is becoming a world capital for advanced batteries,” former Gov. Jennifer Granholm said. “Investments in clean energy manufacturing such as advanced batteries are creating jobs in Michigan and moving our state and nation to a clean energy economy."

She wasn't alone.

“This expansion by one of the world's leaders in battery technology innovation will spur further job creation and economic development in the region,” former Michigan Economic Development Corp. President and CEO Greg Main said.

Local officials were bullish, too.

"LG Chem-Compact Power could have gone anywhere in the world with this project,” Holland Mayor Kurt Dykstra said. “We in Holland are extremely excited to have this world-class company join our community and be a catalyst for our community’s economic future."

Batteries, said state Democrats who supported the massive subsidies, were going to bring Michigan back.

"Michigan is the leader among states in the advanced battery field, and it will help transform our economy,” predicted former Lt. Gov. John Cherry. “We are working to establish an entire advanced battery industry with manufacturers, suppliers, and the entire value chain located right here in Michigan, creating new economic activity and new jobs.”

In a statement, the MEDC said the state hasn’t given any tax credits yet to LG Chem.

“LG Chem Michigan was awarded cell manufacturing and MEGA tax credits for its Holland battery project. To date, MEDC has not issued any credit certificates for either. In addition, the state approved a Renewable Energy Renaissance Zone in the City of Holland. According to a 2012 Progress Report, the company is close to meeting its capital investment milestone, which is due December 2014. The job creation milestone is due December 2015,” the statement read.

James Hohman, assistant director of fiscal policy for the Mackinac Center, said the MEDC that oversees the state tax credit programs isn’t transparent and doesn’t maintain its records on incentives to companies.

The most recent report the MEDC gave on LG Chem was in the 2012 annual report from Oct. 19, 2012. It went to state legislators. That only lists jobs created by LG Chem in its Troy plant and only offers that information up to 2009.

Hohman said taxpayers have pledged a lot to the project and have yet to see any returns.

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See also:

Stimulus-Backed Battery Company Workers With No Work To Do - Playing Cards, Watching Movies, Reading Magazines

Michigan Taxpayers Writing Check to Second Electric Car Battery Maker for $100 Million

Cost to Revive Economy With Battery Plant Subsidies: $5 Trillion

Video Shows President Obama, Top Politicians Praising Failed Green Company

Subsidized Green Energy Company Struggles, Lays Off Workers — Rewards Top Executives

Green Eyeshadow On Red Ink: 'Green' Jobs Fail To Live Up To the Hype

Chevy Volt Costing Taxpayers Up to $250K Per Vehicle

Rosy Solar Jobs Projections Fail To Live Up To the Hype

Trash Collectors Equal 'Green' Jobs? President's Campaign Ad Claims 'Green Energy' Job Growth From Criticized Study

Sun Not Shining on State Solar Subsidies

It's Not Easy Subsidizing Green

Michigan's newest member of Congress, U.S. Rep. Kerry Bentivolio, R-Milford, is introducing his first bill.

Under the measure, small businesses could avoid sanctions for violating federal regulations if they correct the problem within a required time period.

"For the 89 percent of employers in America with fewer than 20 employees, there is an ever-present fear that they may be sanctioned or even put out of business for a violation of any one of the seemingly endless array of federal regulations," Rep. Bentivolio said. "The list is so long, at over 80,000 pages, that it is almost unknowable.

"This bill is transformational, yet quite simple," he said. "It takes on the fundamental question of prior restraint, across the board. It acknowledges the small business owner's natural inclination is to obey the law, protect the community, and ensure the safety of his or her employees."

The legislation has been titled the Protect Small Business Jobs Act of 2013. If enacted, small businesses found guilty of violating federal regulations would be given six months to correct the problem. If the problem were corrected in that time frame, the business would not be penalized. The legislation allows for an additional three month extension if the business is making a good-faith effort to correct the problem.

Rep. Bentivolio said the bill was drafted in a way that repeat offenders could not take advantage of it and the legislation would not apply to cases of imminent danger.

"This way, no business is permitted to ignore regulations on an ongoing basis, but small companies are given a chance to become compliant without being hit by devastating fines," Rep. Bentivolio said. "We view this as a common-sense, bipartisan bill by every measure."

Rep. Bentivolio said the legislation was developed with input from small business groups and former Small Business Association officials. He said it should receive bipartisan support.

"It encourages the great American tradition of entrepreneurship and competition in an age when most Americans believe the government favors the large business at the expense of the small business," Rep. Bentivolio said. “Small businesses account for two out of every three new jobs created in America over the last 30 years.”

Rep. Bentivolio said he is seeking co-sponsors for the bill and pursuing the introduction of a companion bill in the Senate.