Clean Energy Projects to Receive $150 Million in Tax Credits

Clean Energy Projects to Receive $150 Million in Tax Credits

By Seth J. Schriftman, Staff Attorney, Jenner & Block

On December 12, 2013, the United States Energy Department announced that clean energy tax credits of $150 million had been awarded to support domestic clean energy manufacturing. The awards were provided to 12 businesses through the Treasury Department’s Advanced Energy Manufacturing Tax Credit 48C Program, which provides developers with a tax credit of 30 percent for the manufacture of certain types of energy equipment. As a condition of receiving these credits, these clean energy projects must be placed in service by 2017.

The $150 million awarded represents Phase II of the program. Phase I involved the availability of the tax credit, funded at $2.3 billion, to 183 domestic clean manufacturing facilities. Phase II represents the unused credits from Phase I of the program.

In an associated press release, U.S. Energy Secretary Ernest Moniz stated: “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…”

In sum, the awards will be used for:

1.  Carrier Corporation’s expanded production for its condensed gas product line, which includes the most energy efficient gas furnaces on the market;

2.  Corning Incorporated’s expansion of its diesel emissions control products facility;

3.  Cree Inc.’s production of 304 million next generation LED lighting systems;

4.  Delphi Automotive Systems LLC’s project to reduce its production and engineering costs associated with the electric vehicles it produces;

5.  Ford Motor Company’s continued investment in producing electric vehicles;

6.  General Motors Company’s continued development of more propulsion technologies associated with its electric vehicles;

7.  Jyoti Americas, LLC’s expansion related to the only fully-automated lattice transmission tower manufacturing plant in the United States;

8.  LM Wind Power Blades (ND) Inc.’s expansion of its wind blade facility;

9.  MC Ionic Solutions US Inc.’s production of electrolyte solutions for lithium ion batteries used in electric vehicles;

10.  Natel Energy Inc.’s equipping of a facility to produce hydropower turbines;

11.  OSRAM SYLVANIA Inc.’s expansion related to its LED systems for automotive low/high beam projectors; and

12.  Southwire Company’s expansion, which will allow the increased manufacture of electricity distribution wire.

Additionally, the awards will support thousands of new manufacturing jobs in nine States and dozens of supply chains throughout the United States. For more detail regarding these awarded tax credits, please click here.

Read more at Corporate Environmental Lawyer Blog by Jenner & Block LLP.

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