The Treasury and Energy Departments plan to give $2.3 billion in tax credits from the Recovery Act to manufacturers of clean energy equipment.

“These tax credits will help create thousands of high-quality manufacturing jobs in some of the highest-growth segments of the economy,” said Energy Secretary Steven Chu in a statement. “This is an opportunity to develop our global leadership in clean energy manufacturing and build a secure, sustained base of jobs for America’s workers.”

The American Recovery and reinvestment Act created a new tax credit program by authorizing the Treasury to provide developers with an investment tax credit of 30 percent 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, and 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, 2009, and can expect to learn whether their applications are successful by Jan. 15, 2010.

To view the program summary and IRS guidance for applying for the tax credit, click here.

In July, the Treasury and Energy Departments also announced the availability of payments in lieu of tax credits for facilities that produce renewable energy, a program that is expected to result in more than $3 billion of stimulus for energy development in rural and urban communities (see Cash Offered in Lieu of Tax Credits for Clean Energy).

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access