The U.S. Department of the Treasury and the U.S. Department of Energy have created a new program that will award $2.3 billion in tax credits to manufacturers of advanced energy equipment. Authorized by the American Recovery and Reinvestment Act (ARRA), this new program will provide tax credits to manufacturers that produce clean energy equipment.
ARRA created a new tax-credit program by authorizing the Treasury to provide developers with an investment tax credit of 30% for facilities that manufacture particular types of energy equipment. Qualifying manufacturers 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.
The manufacturing tax credit is capped at $2.3 billion. Credits are available for two years or until the cap is reached. Companies can file applications for the first round of credit awards through Oct. 16 and will learn whether their applications are successful by Jan. 15, 2010.
To view the program summary and guidance for applying for the tax credit, click here.