Manufacturing Energy Tax Credit ExtensionMarch 1, 2011
Although it was left unfunded during the waning days of the 111th Congress, the Section 48C Advanced Energy Manufacturing tax credit could be extended during the new Congress.
In its Fiscal Year 2012 budget proposal, the administration of President Barack Obama requested an additional $5 billion in funding for the Advanced Energy Manufacturing tax credit program.
The Advanced Energy Manufacturing tax credit provides a 30 percent tax credit for manufacturers who invest in qualifying new, expanded, or reequipped clean energy manufacturing projects, such wind turbines, solar panels, hybrid-vehicle components, and carbon capture-and-sequestration systems.
The credit was initially part of the American Recovery and Reinvestment Act, which allocated $2.3 billion in credits. This funding, however, was exhausted after less than a third of the 418 projects the U.S. Department of Energy deemed eligible received the tax credits. It is estimated that more than $5.8 billion in eligible applications remain unfunded.
Sen. Max Baucus (D-Mont.), chair of the Senate Committee on Finance, and Rep. Sander Levin (D-Mich.), the ranking member on the House Committee on Ways and Means, both have expressed interest in extending the tax credit—a move strongly supported by the National Association of Manufacturers.
For more information on the Section 48C tax credit, please click here.