The Department of Energy (DOE) and the U.S. Treasury recently announced that $150 million in tax credits are available for clean energy manufacturers. The credits are part of the Advanced Energy Manufacturing Tax Credits program that provided nearly $300 billion total in tax breaks and benefits.
Created by the Recovery Act, the program supports manufacturing of a range of clean energy products, from renewable energy equipment to energy efficiency products to advanced energy storage and carbon capture technology. The goal is to promote investment in domestic clean energy and energy efficiency manufacturing facilities through a competitively awarded 30 percent investment tax credit, which companies must apply for.
Ultimately, the program is intended to boost U.S. competitiveness in the global pursuit of clean energy, DOE officials said.
The initial round of awards in 2009 provided $2.3 billion in credits to 183 projects across the country. However, because some projects did not go forward or changed scope, $150 million was effectively left unused.
DOE said these remaining tax credits will be allocated based on the following: commercial viability, domestic job creation, technological innovation, speed of project completion, and potential for reducing air pollution and greenhouse gas emissions. Details are available on the IRS website.