To further propel the nation toward clean energy and more jobs, manufacturers of equipment for clean energy, such as solar, wind and geothermal, are entitled to a tax credit under a new plan announced Aug. 13 by the government.
The Department of Energy has authorized a total of $2.3 billion in tax credits under the American Reinvestment and Recovery Act of 2009. The Advanced Energy Manufacturing Tax Credit (MTC) provides a 30 percent credit for investments in new, expanded, or re-equipped advanced energy manufacturing projects. The MTC is also referred to as Section 48C of the Internal Revenue Code.
Technologies that are eligible include renewable energy such as sun, wind, geothermal; energy storage such as fuel cells, microturbines or other energy storage systems used in electric vehicles; advanced transmission technologies that support renewable generation including storage; renewable fuel refining or blending technologies; energy conservation such as advanced lighting and smart grid; plug-in electric vehicles and vehicle components such as motors and generators; and property to capture and sequester carbon dioxide and reduce greenhouse gas emissions. Projects must be completed within 4 years of their tax credit acceptance.
Applications must be submitted to the Department of Energy (DOE), which, along with the Internal Revenue Service (IRS), will review and make selections based on commercial viability and ranking relative to other projects. Projects will be ranked based on expected job creation, reduction of air pollutants and greenhouse gas emissions, technological innovation, and implementation time. Preliminary applications are due to DOE Sept. 16, 2009; final applications are due to DOE and IRS on Oct. 16, 2009. The IRS will make determinations by Jan. 15, 2010.
