The Department of the Treasury and the Department of Energy have announced a program to award $2.3 billion in tax credits for manufacturers of advanced energy equipment. This program is authorized by the American Recovery and Reinvestment Act of 2009 (ARRA).
‘These tax credits will help create thousands of high-quality manufacturing jobs in some of the highest-growth segments of the economy,’ says Energy Secretary Steven Chu. ‘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.’
ARRA created a new tax credit program by authorizing Treasury to provide developers with an investment tax credit of 30% 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.
SOURCE: Department of Energy