The U.S. government today announced the availability of $150 million in new tax credits for clean energy projects and energy-efficient manufacturing. The new measure could provide a financial boost to a wide range of companies across the country.
Earlier today, the U.S. Treasury Department and the Department of Energy unveiled a new tax program that will provide up to $150 million in tax credits for clean energy manufacturing, with the goal of strengthening America’s green manufacturing sector, boosting the nation’s energy independence, and stimulating the job market.
“As the economy continues to heal, the president has been clear that we have to do everything we can to boost growth and job creation today and build a more sustainable foundation for tomorrow,” Acting Secretary of the Treasury Neal S. Wolin said. “Manufacturing the clean energy products of the future in America will create good, middle-class jobs right now and help lay the groundwork for the long-term resilience of our economy.”
The additional funds are a holdover from the Advanced Energy Manufacturing Tax Credit, which was established by the American Recovery and Reinvestment Act of 2009. Through a competitive process, the program offered a 30 percent investment tax credit to manufacturing facilities. In the initial round, $2.3 billion in credits were awarded to 183 projects across the country. The $150 million in additional funding announced today went unused by the previous awardees.
Apart from the $2.3 billion from the Advanced Energy Manufacturing Tax Credit, the largest government clean-energy investments since 2009 came in the form of a $5.9 billion loan guarantee to Ford Motor Company for upgrading factories and increasing vehicle fuel efficiency, and $2.4 billion in guarantees to other electric vehicle manufacturers.
The Dept. of Energy will distribute the remaining $150 million in credits to manufacturing projects by evaluating them on a specific set of criteria: commercial viability, domestic job creation, technological innovation, speed to project completion, and the potential for reducing air pollution and greenhouse gas emissions. Secondary factors, such as project size and regional economic development, will also be taken into consideration.
- Manufacturers producing the following energy products may be qualified to receive the credit:
- Solar, wind, geothermal, or other renewable energy equipment;
- Electric grids and storage for renewables;
- Fuel cells and microturbines;
- Energy storage systems for electric or hybrid vehicles;
- Carbon dioxide capture and sequestration equipment;
- Equipment for refining or blending renewable fuels;
- Equipment for energy conservation, including lighting and smart grid technologies; and
- Other advanced energy property designed to reduce greenhouse gas emissions, as determined by the Secretary of the Treasury.
The application period for being certified for a tax credit begins February 7, 2013, and ends July 23, 2013.
Check with IMT Green & Clean Journal for additional details and manufacturers’ reactions to the program.