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US announces $150 million clean energy tax credits to support 'American-made' energy and jobs

Date
12 February 2013
US announces $150 million clean energy tax credits to support 'American-made' energy and jobs

NEW YORK: The US Department of Energy and the US Treasury announced the availability of US$150 million tax credits for clean energy to further boost American jobs and clean energy production, as part of President Obama’s ‘all-of-the-above’ American energy drive.

The Advanced Energy Manufacturing Tax Credits are designed for clean energy and energy efficiency manufacturing projects across America, of which will be individually assessed by the Department of Energy.

The Tax Credits were created by the American Recovery and Reinvestment Act to drive investment in domestic, clean energy and energy efficiency, through a competitively-awarded 30% investment tax credit.

In the first round, $2.3 billion worth of credits was distributed to 183 projects across the US. The $150 million is the remainder of this initial amount.

The Government aims to bolster the nation’s global competitiveness and generate new American jobs though the scheme.

Before stepping down from his post, Steven Chu, US Energy Secretary, said: “Since 2009, the Advanced Energy Manufacturing Tax Credit program has supported innovative American manufacturers that boost our nation’s competitiveness in the global race for clean energy. These new investments will continue that momentum, supporting the President's commitment to American-made energy, increasing energy security, and creating jobs.”

Neal S. Wolin, Acting Secretary of the US Treasury, said: “As the economy continues to heal, the President has been clear that we have to do everything we can to boost growth and job creation today and build a more sustainable foundation for tomorrow. Manufacturing the clean energy products of the future in America will create good, middle-class jobs right now and help lay the groundwork for the long-term resilience of our economy.”

Amy Davidsen, US Director, The Climate Group commented: "Advanced energy is the future, not only for the US, but for the world. Indeed, the global advanced energy market grew to US$1.1 trillion in 2011 - and US$132 billion in the US alone.

"Policies such as these help ensure that US manufacturers continue to play a central role in this future by encouraging American innovation and making sure we have the skills needed to compete in the emerging clean energy economy."

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By Clare Saxon

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