The State of Tennessee is beginning to reap the beneits sown into legislation last year that guarantees green companies investing in the state will not have to pay any future carbon taxes.
The state committed to offsetting through tax breaks any increased costs caused by federal taxes on carbon emissions, if green energy companies spend atleast $250 million in the state.
So far it has worked, drawing more than $2 billion in investments.
Last week by German chemical group Wacker Chermie (WCH.DE) announced plans to build a $1 billion plant to make silicon–the raw material for photovoltaic solar cells–in Bradley County.
The $1.2 billion Hemlock Semiconductor plant to be built in Clarksville will also be producing silicon.
Governor Phill Bredesen reportedly asked state commissioners to develop a strategy to jumpstart the state’s alternative energy industry.
State Revenue Commissioner Reagan Farr said the tax credit was deemed to be the most effective way to reassure companies that were hesitant to move forward with investments due to uncertainty about the future of legislation to reduce greenhouse gas emissions.
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