Press Release
☷Biden Harris Administration Announces $4 Billion in Tax Credits to Build Clean Energy Supply Chain Drive Investments and Lower Costs in Energy Communities
U.S. Department of Energy ( By Press Release office)
Mar 31,2024
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President Biden ' s Investing in America Agenda is providing support for over 100 American - made clean energy manufacturing , critical minerals , and industrial decarbonization projects . These initiatives aim to strengthen domestic supply chains , reduce costs , and create well - paying jobs . The U . S . Department of Energy , along with the Department of Treasury and the Internal Revenue Service , has announced $4 billion in tax credits for these projects across 35 states . These tax credits , funded by President Biden ' s Inflation Reduction Act , will be awarded to large , medium , and small businesses , as well as state and local governments . To qualify for the 30% investment tax credit , all recipients must meet prevailing wage and apprenticeship requirements . Additionally , $1 . 5 billion of the tax credits will be allocated to projects in historic energy communities . These initiatives will not only generate good - paying jobs and lower energy costs but also support the climate , supply chain , and energy security goals of the Biden - Harris Administration ' s Investing in America agenda . U . S . Secretary of Energy , Jennifer M . Granholm , highlighted the importance of investing in clean energy manufacturing and emphasized the administration ' s focus on benefiting communities that have traditionally played a significant role in powering the nation . The Qualifying Advanced Energy Project Tax Credit ( 48C ) is being implemented by the Department of Energy in partnership with the Treasury and IRS . The program , which was established in 2009 and expanded under the Inflation Reduction Act of 2022 , will allocate at least $4 billion of the total $10 billion investment to projects in designated energy communities . These communities are defined as those with closed coal mines or coal plants . The 48C Program provides an investment tax credit of up to 30% for certified projects that meet prevailing wage and apprenticeship requirements . In the first round of applications , the program received significant interest , with concept papers submitted for projects totaling nearly $42 billion in tax credits across various categories , including nearly $11 billion for projects in designated energy communities . The DOE received around 250 full applications for tax credits totaling $13 . 5 billion . The projects varied in size and scope , with requests ranging from under $1 million to over $100 million . The Round 1 allocations for the §48C program include $2 . 7 billion for clean energy manufacturing and recycling , $800 million for critical materials recycling , and $500 million for industrial decarbonization . These projects aim to support the transition to a clean and resilient energy system , reduce greenhouse gas emissions , and create jobs . Selected projects must submit information to the 48C portal within two years for certification and must be in service within an additional two years . The program will publish the names of certified organizations and their allocations , but cannot disclose identifying information without consent . Allocation recipients can choose to share information voluntarily and can contact the DOE for potential participation in future announcements . Participating in the upcoming announcements won ' t change how much you receive . The U . S . Treasury and IRS will be releasing details on the second round of the §48C program soon , with concept paper submissions expected this summer . Find out more about the Qualifying Advanced Energy Project Credit ( 48C ) and the Program . ### .
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