Renewables: Tax Credit for Manufacturing Facilities
The Obama administration on Aug. 14 announced a new program to award $2.3 billion in tax credits to manufacturers of advanced energy equipment. Authorized under the American Recovery and Reinvestment Act, the program will allow manufacturers to reduce their taxes by 30% of the amount they invest in establishing, expanding or retooling manufacturing facilities for equipment for solar, wind and other renewable energy sources. The credit also will be available to manufacturers of equipment to capture and sequester carbon.
The administration says the program will help encourage innovation in design of clean energy technologies and create green jobs.
Denise Bode, CEO of the American Wind Association, says the share of domestically manufactured wind-turbine components in the U.S. rose to 50% in 2008, up from less than 30% in 2005. “The domestic share can increase further with the stimulus funding now beginning to flow, coupled with a strong, long-term policy commitment—if Congress passes a strong [renewable energy standard], says Bode.