On August 13, 2009, The United States Treasury Department and Department of Energy announced the availability of $2.3 billion in tax credits under the Section 48C Advanced Energy Manufacturing Tax Credit Program, which was enacted by the American Recovery and Reinvestment Act of 2009. The MTC program will provide developers with an investment tax credit of 30 percent for facilities that manufacture solar, wind, and geothermal energy equipment; fuel cells, microturbines, and batteries; electric cars; electric grids to support the transmission of renewable energy; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions. The manufacturing tax credit is capped at $2.3 billion, and credits are available for two years or until the cap is reached.
According to the guidance released with the announcement, the purpose of the program is to encourage taxpayers to re-equip, expand, or establish manufacturing facilities for the production of qualifying advanced energy facilities. Among the selection criteria to be considered by Treasury in deterring which qualifying advanced energy projects will be awarded credits, key considerations include assessing which project will result in the greatest domestic job creation and provide the greatest net reductions in greenhouse gas emissions. More information on the program can be found in Notice 2009-72 as well as our forthcoming Bricker & Eckler Green Strategies Bulletin at www.bricker.com/legalservices/practice/green.