By US Department of Energy
Thursday, August 13, 2009
Tax Credit Program Will
Increase Economic Development, Promote Manufacturing of Clean
Energy Equipment
WASHINGTON – As part of an innovative
partnership aimed at increasing economic development while setting
our nation on the path to energy independence, the U.S. Department
of the Treasury and the U.S. Department of Energy today announced a
program to award $2.3 billion in tax credits for manufacturers of
advanced energy equipment. Authorized by the American
Recovery and Reinvestment Act (Recovery Act), this new program will
provide tax credits to manufacturers who produce clean energy
equipment.
"This program will help encourage innovation in design of clean
energy technologies," said Treasury Secretary Tim Geithner.
"This partnership between Treasury and Energy adds an important new
dimension to the incentives created in the Recovery Act to increase
US manufacturing output, improve energy efficiency, and develop
alternative sources of energy."
The Recovery Act created a new tax credit program by authorizing
Treasury to provide developers with an investment tax credit of 30
percent for facilities that manufacture particular types of energy
equipment. Qualifying manufactures 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.
Said Energy Secretary Steven Chu: "These tax credits will help
create thousands of high quality manufacturing jobs in some of the
highest growth segments of the economy. This is an
opportunity to develop our global leadership in clean energy
manufacturing and build a secure, sustained base of jobs for
America's workers."
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. To view the program summary
and guidance for applying for the tax credit, please visit the Advanced Energy
Manufacturing Tax Credit (48C) page.
The announcement of the manufacturing tax credit is the next
step in an innovative partnership between Treasury and Energy aimed
at promoting energy production and energy independence. Tax
programs have provided successful incentives for encouraging the
development of renewable energy in the past - in 2006 alone,
approximately $550 million in renewable energy tax credits were
provided to 450 businesses. In July, Treasury and Energy
announced the availability of a payment in lieu of tax credits for
facilities that produce renewable energy, a program that is
expected to result in more than $3 billion of stimulus for energy
development in rural and urban communities.
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