Generac gets $10 million in tax credits for expansion
Plans to hire 400 jobs during next 5 years

By Katherine Michalets - Freeman Staff

August 14, 2017

TOWN OF GENESEE — Generac Power Systems Inc. has accepted up to $10 million in tax credits from the Wisconsin Economic Development Corporation to help with its growth that will also lead to the creation of at least 400 jobs during the next five years.

Generac, a manufacturer of power generation and engine-powered products was awarded up to $10 million in Enterprise Zone Tax Credits through 2021 from WEDC that will support the company’s growth locally and at its manufacturing facilities throughout Wisconsin, according to the announcement Monday.

The plan, according to the announcement, is for Generac to invest more than $73 million in building renovations and equipment in a growth plan that will encompass its facilities in Waukesha, Oshkosh, Jefferson, Eagle, Whitewater and Berlin. The plan calls for the expansion of Generac’s corporate headquarters, research and development, and production operations in Wisconsin.

“As we’ve grown and added facilities throughout Wisconsin, it became clear that we needed to invest in a cutting-edge space at our corporate headquarters allowing us to dramatically advance our key product development and engineering activities,” said Aaron Jagdfeld, president and CEO of Generac in a statement. “We’ve been on our current campus since 1965, but a lot has changed since then. This project will help us realize efficiencies at our headquarters facility that will drive continued innovation.”

Jagdfeld added that particular emphasis would be placed on advanced research and development capabilities, including the addition of equipment and technologies to enable faster prototyping and testing of products in-house.

“From its beginnings in a Waukesha County garage more than 50 years ago, Generac has become a leader in its industry and now employs 2,000 people throughout the state,” said Gov. Scott Walker in a statement. “I applaud the company for making the commitment to continue to grow in Wisconsin. This is the latest example of companies in Wisconsin and around the world that are expanding or establishing operations in the state because of the pro-business climate our policies have created over the last six years.”

The actual amount of state tax credits awarded to Generac by WEDC will be contingent upon the number of new jobs created, the level of capital investment the company makes and the amount spent on employee training. Generac plans to make significant investments to train its workers on the new equipment it will be installing, according to the announcement.

In addition to the 400 jobs expected to be created by Generac, an economic modeling study projects that the project will indirectly generate 356 additional jobs in the region. Over a five-year period, the direct and indirect jobs could generate $9.5 million in additional state income tax revenue, according to the announcement.

Email: kmichalets@conleynet.com