LANSING – House Democrats today passed legislation sponsored by State Representative Lisa Brown (D-West Bloomfield) that extends up to $100 million in tax credits over four years to Xtreme Power, a leading manufacturer of large-scale commercial batteries. Brown's plan is part of a larger effort to position Michigan as a leader in advanced battery technology, attract $725 million in private investment, create thousands of jobs and transform a shuttered Ford Motor Co. plant in Wixom into a cutting-edge 21st century energy park.
"Michigan is primed to lead the way in revolutionizing how the world powers its homes, businesses and vehicles, but it is vital that we act quickly so we don't lose out to other states and countries," Brown said. "Emerging industries such as alternative energy and advanced batteries offer huge economic opportunity for our state and the potential job growth we need to put our workers back on the job. By moving our state to the forefront of these emerging industries, we're ensuring that Michigan workers will build the solar panels and battery components to power the 21st century."
Brown's bill, which passed the House by a 90 to 17 margin, is a key step in efforts to redevelop the abandoned 4.7-million-square-foot Wixom plant by selling the property to Clairvoyant Energy and Xtreme Power to create an alternative energy park. The state tax credits are central to the companies choosing Michigan over other competing states and securing the federal loans needed to finance the project. Bringing these two companies to Wixom will further anchor Michigan as a leader in advanced battery technology and attract other world-class businesses to the park.
Texas-based Xtreme Power alone will create 2,500 jobs at the Wixom site. The company produces large batteries that collect and store renewable energy for use in traditional delivery systems like the current power grid, which brings electricity from power plants to homes and businesses. California-based Clairvoyant Energy is an industry leader in solar technology.
Brown's legislation aims to strengthen Michigan's position as a magnet for emerging industries and builds on first-of-a-kind tax incentives for manufacturers of advanced batteries for electric vehicles. The $555 million in tax incentives from those efforts have resulted in more than $2 billion in investments by five world-class advanced battery companies that will create 6,600 jobs in Michigan.
"Extending these credits is the next step in making Michigan a national and global trailblazer in alternative energy and advanced battery technology," said House Speaker Andy Dillon (D-Redford Township). "I applaud Representative Brown and the Ford Motor Company for their efforts in bringing this energy park to fruition. These incentives play a vital role in attracting businesses and the good-paying, high-tech jobs Michigan needs to succeed in the global marketplace."
Brown's bill works in tandem with legislation from State Representative Ed Clemente (D-Lincoln Park) which expands Michigan Business Tax credits to attract solar energy companies like Clairvoyant Energy, and increases the Michigan Economic Growth Authority (MEGA) tax credits available to help support Michigan businesses. Those bills are awaiting action in the Senate.
"Bringing companies like Clairvoyant Energy and Xtreme Power to Michigan creates the type of job growth that our state needs to rebound," said State Representative Mark Meadows (D-East Lansing). "This is further evidence that Michigan is poised to not only lead the nation in alternative energy and advanced battery technologies, but to emerge from this economic downturn stronger than ever. We already have the infrastructure and top-notch workforce in place. Creating this energy park will only bolster our efforts in attracting other alternative energy companies and investment from around the world."