| State: |
Federal |
| Incentive Type: |
Industry Recruitment/Support |
| Eligible Efficiency Technologies: |
Lighting, Lighting Controls/Sensors |
| Eligible Renewable/Other Technologies: |
Solar Water Heat, Solar Thermal Electric, Photovoltaics, Wind, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, Batteries and Energy Storage; Advanced Transmission Technologies that Support Renewable Energy Generation; , Renewable Fuels, Fuel Cells using Renewable Fuels, Microturbines |
| Applicable Sectors: |
Commercial, Industrial, Manufacturing |
| Amount: | 30% of qualified investment |
| Maximum Incentive: | Total amount of credits to be allocated shall not exceed $2.3 billion |
| Terms: | Apply first to the Department of Energy (DOE); must receive recommendation and ranking from DOE in order to apply to the Internal Revenue Service for certification of credits |
| Web Site: |
http://www.energy.gov/recovery/48C.htm
|
The U.S. Treasury Department, in consultation with the U.S. Department of Energy (DOE), is no longer accepting applications for this tax credit. The applications were due to DOE by September 16, 2009 with final applications due to DOE October 16, 2009. Only applicants accepted and ranked by the DOE were allowed to submit final applications to the Internal Revenue Service (IRS) by December 16, 2009. See a list of approved projects (announced in January).
The American Recovery and Reinvestment Act of 2009 (H.R. 1), enacted in February 2009, established a new investment tax credit to encourage the development of a U.S.-based renewable energy manufacturing sector. In any taxable year, the investment tax credit is equal to 30% of the qualified investment required for an advanced energy project that establishes, re-equips or expands a manufacturing facility that produces any of the following:
- Equipment and/or technologies used to produced energy from the sun, wind, geothermal or "other" renewable resources
- Fuel cells, microturbines or energy-storage systems for use with electric or hybrid-electric motor vehicles
- Equipment used to refine or blend renewable fuels
- Equipment and/or technologies to produce energy-conservation technologies (including energy-conserving lighting technologies and smart grid technologies)*
Qualified investments generally include personal tangible property that is depreciable and required for the production process. Other tangible property may be considered a qualified investment only if it is an essential part of the facility, excluding buildings and structural components.
The U.S. Treasury Department will issue certifications for qualified investments eligible for credits to qualifying advanced energy project sponsors. In total, $2.3 billion worth of credits may be allocated under the program. After certification is granted, the taxpayer has one year to provide additional evidence that the requirements of the certification have been met and three years to put the project in service. There are provisions for credit recapture for non-compliance.
In determining which projects to certify, the U.S. Treasury Department must consider those which most likely will be commercially viable, provide the greatest domestic job creation, provide the greatest net reduction of air pollution and/or greenhouse gases, have great potential for technological innovation and commercial deployment, have the lowest levelized cost of generated (or stored) energy
or the lowest levelized cost of reduction in energy consumption or greenhouse gas emissions,
and have the shortest project time.
Any taxpayer receiving this credit may not also receive
business energy investment tax credit.
See
U.S. DOE Advanced Energy Manufacturing Tax Credit (48C) Website for more information.
*Note: This credit may be expanded in the future to include other energy technologies that reduce greenhouse gas emissions, as determined by the U.S. Treasury Department.
