Clean Energy Developers Receive $2.3 Billion in Tax Credits

President Obama announced Friday that it's administration will award $2.3 billion dollars through the Recovery Act Advanced Energy Manufacturing Tax Credits to clean energy developers to enable over $7 billion in new manufacturing projects. The tax credits are in part of expedite clean technology advancement, but also to spur job creation through over 180 projects that could create tens of thousands of new jobs. “Building a robust clean energy sector is how we will create the jobs of the future,” said President Obama. “The Recovery Act awards I am announcing today will help close the clean energy gap that has grown between America and other nations while creating good jobs, reducing our carbon emissions and increasing our energy security.”

Providing incentives and reducing barriers to clean technology advancement is not only necessary for tackling global warming. The renewable energy race around the world will likely shape countries' perceptions of one another. Those who are able to reduce dependence on natural resources will also reduce their dependence on foreign energy imports. It'll be a play to maintain international power and prowess, which is partly shown by the United State's efforts to reduce the renewable energy gap between our country and others who use a great percentage of clean energy sources.

President Obama has set a goal of doubling United State's renewable energy usage over the next 3 years. The credits will be awarded on a competitive basis and on the following criteria:

1. Commercial viability
2. Domestic job creation
3. Technological innovation Speed to project completion
4. Potential for reducing air pollution and green house emissions
5. Diversity of geography
6. Technology and project size
7. Regional economic development
8. Below is some additional information from Whitehouse.org's fact sheet for the initiative:

Estimated Jobs Impact and Timeline of the 48C Manufacturing Tax Credits: Recovery Act investments of up to $2.3 billion for advanced energy manufacturing facilities will generate more than 17,000 jobs. This investment will be matched by as much as $5.4 billion in private sector funding likely supporting up to 41,000 additional jobs.

Timing of Projects:

The statute authorizing the 48C tax credits allows projects that are completed on or after February 17, 2009, when the Recovery Act was signed. Projects must be commissioned before February 17, 2013. The statute favors the selection of projects that are in service early. As a result, some of the selected projects already have been completed and begun operation.

Applicant Pool:

The application deadline for the 48C program was October 16, 2009. Over 500 applications were received with tax credit requests totaling over $8 billion. The 48C applications pool was distributed across many clean energy technologies and was geographically distributed to more than 40 states.

Qualifying manufacturing facilities included the production of a wide range of clean energy products:

Solar, wind, geothermal, or other renewable energy equipment Electric grids and storage for renewables Fuel cells and microturbines Energy storage systems for electric or hybrid vehicles Carbon dioxide capture and sequestration equipment Equipment for refining or blending renewable fuels Equipment for energy conservation, including lighting and smart grid technologies Plug-in electric vehicles or their components, such as electric motors, generators, and power control units Other advanced energy property designed to reduce greenhouse gas emissions may also be eligible as determined by the Secretary of the Treasury.