DOE offers $150 million in clean energy tax credits
The credits will go towards investments in domestic manufacturing equipment by 12 businesses
The U.S. Department of Energy (DOE) announced $150 million in clean energy tax credits to build U.S. capabilities in clean energy manufacturing. The credits will go towards investments in domestic manufacturing equipment by 12 businesses.
Through the Advanced Energy Manufacturing Tax Credit program (48C Program), these awards will help create thousands of jobs across the country and increase U.S. competitiveness in the global clean energy market. The program is a part of the president's Climate Action Plan, according to the DOE.
The Departments of Energy and the Treasury worked in partnership to develop, launch, and award the funds for this program. The Advanced Energy Manufacturing Tax Credit authorized Treasury to provide developers with an investment tax credit of 30 percent for the manufacture of particular types of energy equipment.
Funded at $2.3 billion, the tax credit was made available to 183 domestic clean energy manufacturing facilities during Phase I of the program. The awards, or Phase II, were launched to use $150 million in tax credits that were not used by the previous awardees and support projects that must be placed in service by 2017.
The awards include domestic manufacturing of a wide range of renewable energy and energy efficiency products — from hydropower and wind energy to smart grid technologies to fuel efficient vehicles — and will support thousands of new manufacturing jobs in nine states and dozens of supply chains throughout the U.S. These projects, subject to final certification, include following:
Energy Efficient Buildings: With the support of $5.1 million in 48C Program tax credits, Carrier Corporation will expand production at its Indianapolis facility to meet increasing demand for its eco-friendly condensing gas furnace product line. The new line includes the most energy efficient gas furnaces on the market – all with at least 95 percent annual fuel use efficiency.
Fuel Efficient Vehicles: Corning Incorporated received $30 million in 48C Program tax credits to expand the manufacturing capacity of its diesel emissions control products facility in Erwin, New York. The site development and infrastructure enhancements support domestic and international demand for ceramic substrates and filters for heavy-duty diesel engine, truck, construction and agricultural equipment. Corning’s project benefits the local economy with an estimated 200-250 permanent manufacturing and warehouse jobs and 275 temporary construction jobs.
Renewable Energy: Natel Energy Inc. makes low-head, high-flow hydroelectric turbines for new, distributed, utility-scale hydropower projects as well as for retrofitting dams and irrigation canals. With more than $2 million in 48C Program tax credits, Natel is equipping a manufacturing facility on California’s former Alameda Naval Air Station. The facility will produce 200 turbines annually — roughly 90 MW — to enable environmentally friendly hydropower development worldwide.