NEMA members awarded advanced energy manufacturing tax credits

Source: PlantServices.com

Jan 26, 2010

Several member companies of the National Electrical Manufacturers Association (NEMA) have been awarded a total of more than $120 million of American Recovery and Reinvestment Act (ARRA) funding.

President Obama announced awards of $2.3 billion in a new 30% manufacturing tax credit funded in ARRA. The act provides funding for competitively selected projects in “advanced energy projects” that re-equip, expand or establish a manufacturing facility for specified energy categories.

The administration approved 183 manufacturing facilities in 43 states for the tax credit. NEMA member technology awards exceeded $120 million in projects in Indiana, Texas, Wisconsin, North Carolina, Ohio, South Carolina, Georgia, Illinois and other states.

During the development of the legislation, NEMA successfully worked with Congress to expand the types of qualifying manufacturing facilities eligible for this “clean energy” credit to include investments in equipment for energy conservation, including Smart Grid and lighting technologies, as well as electric grid and energy storage. Other energy categories are solar, wind, geothermal and other renewable energy equipment; fuel cells and micro-turbines; and plug-in electric vehicles and their components.

The $2.3 billion in tax credits were awarded on a competitive basis and assessed on criteria that included commercial viability, domestic job creation, technological innovation and speed to project completion. In making the announcement, the administration estimated that more than 17,000 jobs will be generated, with additional private sector matching funding of $5.4 billion, yielding up to 41,000 additional jobs.

More than 500 applications exceeding $8 billion were received for consideration. Under the program, tax credits will be issued to companies, and projects must be completed by Feb. 17, 2013. The administration has requested an additional $5 billion from Congress to expand the 48C Tax Credit.

For more information, visit www.energy.gov/news2009/8501.htm.

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