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Tech-fund winner Xtreme Power files for bankruptcy

AUSTIN, Texas (AP) -- An energy storage company near Austin, Texas that received $2 million in taxpayer dollars under the state's Emerging Technology Fund has filed for bankruptcy.

Kyle-based Xtreme Power Inc. filed for Chapter 11 protection in federal bankruptcy court last week. Gov. Rick Perry awarded the company money in 2007 from his investment fund for high-tech Texas startups.

Phone messages left with company officials and Perry's office were not immediately returned Monday.

The tech fund was created in 2005 and is one of Perry's signature initiatives as governor. Many Republican candidates for statewide offices, however, are skeptical about the program's future and say the state shouldn't be picking winners and losers.

At least a dozen tech-fund recipients have filed for bankruptcy. The fund's annual performance report to lawmakers is due this week.