DOE Announces $150 Million in U.S. Clean Energy Manufacturing Tax Credits
December 18, 2013
The Energy Department on December 12 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 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. Carrier Corporation received $5.1 million in 48C Program tax credits to expand production at its Indianapolis facility to meet increasing demand for its eco-friendly condensing gas furnace product line. Corning Incorporated received $30 million in tax credits to expand the manufacturing capacity of its diesel emissions control products facility in Erwin, New York. And Natel Energy Inc. received more than $2 million in tax credits to equip a manufacturing facility on California’s former Alameda Naval Air Station to produce low-head, high-flow hydroelectric turbines.
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 the Treasury Department to provide developers with an investment tax credit of 30% 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 Phase II credits were launched to utilize $150 million in tax credits that were not used by the previous awardees. The credits support projects that must be placed in service by 2017. See the Energy Department press release.