$2.3 billion worth of new money will go toward incentivizing clean energy manufacturing in the United States. Authorized by the American Recovery and Reinvestment Act (ARRA), otherwise known as the federal stimulus package, the program stems from a partnership between the Department of Treasury and Department of Energy.
Photo Credit: lepti
The program will provide tax credits to manufacturers of clean energy equipment. Eligible manufacturers will produce solar, wind and geothermal energy equipment, as well as fuel cells, microturbines, batteries and electric cars. Also included are smart grid technology, energy conservation and carbon sequestration equipment for “clean coal” plants.
Under the tax credit program, the feds will cover 30 percent of the cost for facilities that manufacture clean energy equipment. Credits are available for two years or until the $2.3 billion is fully spent. Qualifying companies can expect credit payment within 180 days of filing and acceptance.
It’s great to see the federal government adding manufacturing tax credits to our incentive portfolio. Too many solar panels and like products are imported when they could be built, bought and sold right here in the states, minimizing transportation costs. States such as Oregon with manufacturing credits already in place have seen a pleasant spike in renewable green jobs. Expect these federal credits to further aide those states as they push for a sustainable economy.
This tax credit will finally incentivize the renewable energy chain at its source. With credits at the federal level now in place for manufacturers, producers, business and home owners and even utilities, we are finally taking a more holistic approach to advancing clean energy in our country.
Now, where’s that feed-in tariff? I know it’s around here somewhere…