The U.S. Department of the Treasury and the U.S. Department of Energy (DOE) Thursday announced a program to award $2.3 billion in tax credits for manufacturers of advanced energy equipment.
Authorized by the American Recovery and Reinvestment Act, this new program will provide 30% investment tax credits to manufacturers who produce clean energy equipment.
Qualifying manufactures 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.
“This program will help encourage innovation in design of clean energy technologies,” said Treasury Secretary Tim Geithner. “This partnership between Treasury and Energy adds an important new dimension to the incentives created in the Recovery Act to increase US manufacturing output, improve energy efficiency, and develop alternative sources of energy.”
The manufacturing tax credit is capped at $2.3 billion, and credits are available for two years or until the cap is reached.
Tax programs have provided successful incentives for encouraging the development of renewable energy in the past–in 2006 alone, approximately $550 million in renewable energy tax credits were provided to 450 businesses. In July, Treasury and Energy announced the availability of a payment in lieu of tax credits for facilities that produce renewable energy, a program that is expected to result in more than $3 billion of stimulus for energy development in rural and urban communities.
Companies can expect to receive payments within 180 days of filing for the credit, DOE said.
A program summary and guidance for applying for the tax credit are available at the link below.
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