More funds for clean energy manufacturing
Vice President Joe Biden announced Wednesday the release of $5 billion in additional funding for the Advanced Energy Tax Credit under the American Recovery and Reinvestment Act (ARRA).
This tax credit supports the building and equipping of new, expanded, or re-tooled factories that manufacture green energy products. The program covers many clean energy technologies, including wind, solar, batteries, energy efficiency, advanced transportation, and advanced energy transmission. It provides a 30 percent tax credit for investments in factories that manufacture these items.
“American manufacturing plays a vital role in our society and economy. It was instrumental in building our middle class and we must work with the industry to retool to remain competitive for the economy of the future,” Vice President Biden said. “We have to jumpstart growth in green manufacturing – and part of that is encouraging companies to build the components of green technology right here on American soil.”
ARRA included $2.3 billion in tax credits that will support an additional $5.4 billion in private capital investment. The Departments of Energy and Treasury received more technically acceptable applications than resources available. Instead of turning down these extra applicants, the Obama administration supports expanding the program.
An additional $5 billion would triple the initial funding and support at least $15 billion in total capital investment, creating tens of thousands of new construction and manufacturing jobs.
“By combining the most talented workforce, the most entrepreneurial businesses, the best universities in the world with seed capital from government investment, we can once again produce cutting-edge technology that creates 21st century jobs here in America,” Biden said.