“With four dollar-a-gallon gas, anything we can do to … give a car more fuel efficiency is a great idea,” Hoogendyk said. “I’d hate to see someone develop something here in Michigan and take it to another state to manufacture because of the tax.”

Hoogendyk said Michigan’s personal property tax keeps many businesses from pursuing new ventures because they can’t afford to pay taxes on the equipment they would need to purchase. The bill would encourage companies to locate in Michigan to benefit from the tax exemption, he said.

Hoogendyk said the idea for the bill came from a constituent who believes they have found a way to produce a fuel efficiency-improving device.

“This particular individual is working with a number of other individuals to develop a device, and one of them is from Georgia,” he said. “Maybe they’ve got a better tax and regulatory environment than Michigan, so they’ll go to Georgia.”

For companies already located within the state, the bill could be enough to convince them to pursue creating the device. Chris Engemann, owner of Ionia-based High Performance Engineering, said he would consider creating the device if an exemption were available.

“We do research and development now, but not related to the fuel systems,” Engemann said. “If that legislation would pass, I would certainly look at it.”

But MSU economics professor Charles Ballard said while bills such as Hoogendyk’s may have some influence on bringing companies to Michigan, there are several other factors companies look for, such as a skilled workforce, resources and infrastructure such as roads and airports.

“Among some folds in Michigan, it’s believed that lower taxes are the only consideration in economic policy and if we lower enough, we will inevitably have good outcomes,” Ballard said. “Low taxes are not the single consideration.”

Tom Martin, director of the Department of Labor and Economic Growth’s energy office, agreed that the tax incentive may not be enough to attract companies.

“They’re more important to some than others, but they still are just one factor,” he said.

But while Hoogendyk admits that the bill alone may not be enough to persuade businesses to relocate to Michigan, he said it’s a step in the right direction.

“This bill isn’t just one magic bullet, but it addresses the area of auto manufacturing, and that’s always been our strength in this state,” he said.