Treasury, DOE Offer $2.3 Billion in Tax Credits for Energy Manufacturers
August 19, 2009
The new federal tax credit is meant to encourage investment in new manufacturing facilities for clean energy technologies, such as this wind blade production plant in Pennsylvania. Enlarge this image
DOE and the U.S. Department of the Treasury have launched a new program to award $2.3 billion in tax credits to manufacturers of equipment for clean energy systems. The American Recovery and Reinvestment Act authorized the Treasury Department to provide developers with an investment tax credit of 30% percent for facilities that manufacture particular types of energy equipment.
Qualifying manufacturers will produce solar, wind, and geothermal energy equipment; fuel cells, microturbines, and batteries; electric cars; electric grids to support the transmission of renewable energy; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions. The manufacturing tax credit is capped at $2.3 billion, and credits are available for two years or until the cap is reached. Companies can expect to receive payments within 180 days of filing for the credit. See the DOE press release and for more details, see DOE's Advanced Energy Manufacturing Tax Credit (48C) Web page.
The new tax credit "will put America on track to once again be the global leader in solar manufacturing," according to Rhone Resch, president and CEO of the Solar Energy Industries Association. "This program will attract billions of dollars of investment in manufacturing facilities in the U.S. and will create new jobs in states where they are needed most. We expect solar-related provisions in the stimulus bill like this one to create 110,000 jobs in the solar industry in 2009 and 2010 combined." See the SEIA press release.