Money’s tight in Washington D.C. as Democrats and Republicans continue fierce infighting over the federal budget, deficit reduction, and what exactly is appropriate fiscal policy at this juncture in what’s been a gradual, lopsided economic recovery. Throughout this period, fostering development of a renewable, clean energy manufacturing base has been a focal point for the Obama Administration.
Maintaining and adding impetus to its “green” economy drive, which includes the launch of a historic Climate Change Action Plan, U.S. Secretary of Energy Ernest Moniz, speaking at the DOE’s American Energy and Manufacturing Competitiveness Summit on December 12, announced $150 million in Phase II 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 DOE’s Advanced Energy Manufacturing Tax Credit (48C) program, DOE explains in a press release.
Building the U.S. Clean Energy manufacturing base
183 U.S. clean energy manufacturers received $2.3 billion in federal tax credits during Phase I of the Advanced Energy Manufacturing Tax Credit program. The $150 million in Phase II tax credits announced Dec. 12 were not used by previous awardees.
The 48C Phase II tax credits will support 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 nine states and dozens of supply chains throughout the United States,” the DOE elaborates. They are required to come into service by 2017.
“Cost-effective, efficient manufacturing plays a critical role in continuing U.S. leadership in clean energy innovation, and the tax credits announced today will help reduce carbon pollution from our vehicles and buildings; create new jobs and supply more clean energy projects in the United States and abroad with equipment made in America,” the Energy Secretary was quoted as saying.