LANSING – Macomb lawmakers today threw their support behind a plan that will extend up to $100 million in tax credits over four years to Xtreme Power, a leading manufacturer of large-scale commercial batteries. The plan, which is expected to pass the House on Wednesday, 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.
"Bringing emerging industries like advanced battery manufacturing to Michigan is one of the best ways to get our workers back on the job and revitalize our economy," said State Representative Jennifer Haase (D-Richmond). "Putting idle auto plants and our strong manufacturing base back to work for a new purpose will help position our state as a leader in the alternative energy industry and create the good-paying jobs our hard-working residents need. This is the type of innovative action needed to get our state back on track."
The bill 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.
The legislation that the lawmakers support 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.
"Michigan has the top-notch workforce needed to build the solar panels and advanced battery components that will play a major role in diversifying our economy and getting people back to work," said State Representative Sarah Roberts (D-St. Clair Shores). "However, Michigan has to be aggressive to make sure that our workers – not those from other states and countries – get these jobs. Passing this plan quickly will ensure that Michigan becomes the world leader in these emerging industries and attracts the businesses and good-paying jobs our workers need."
The bill works in tandem with additional legislation passed by the House earlier this year, 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.
"Now that we have established Michigan as a leader in advanced auto batteries, we must take this opportunity to jump to the forefront of another part of the advanced battery industry," said State Representative Jon Switalski (D-Warren). "These incentives are exactly what we need to bring world-class companies, and the good-paying jobs they provide, to Michigan. It's great to see the Wixom plant, part of our honored auto tradition here in Michigan, provide the foundation of this revolution that will put America's most talented workers back on the job."