WASHINGTON D.C. – U.S. Sen. Sherrod Brown (D-OH) joined a group of 18 Senators in writing to Senate Leadership to include the Advanced Energy Manufacturing Tax Credit (48C) program in tax extenders package considered by the Senate.  Brown first introduced the Security in Energy and Manufacturing (SEAM) Act in May 2010, and has held several roundtables with Ohio manufactures who received Recovery Act tax credits to improve the energy efficiency of their facilities and create new, clean energy manufacturing jobs.

"The 48C program is critical to helping manufacturers create jobs and transition to a clean energy economy,” Brown said. “An expanded 48C program would provide strong incentives for the private sector to create good-paying jobs and innovative clean technologies while we bolster domestic manufacturing capacity.” 

The Advanced Energy Manufacturing Tax Credit was authorized in Section 1302 of the Recovery Act and requires the Secretary of Treasury to work in consultation with the Secretary of Energy. It provides a 30 percent credit for domestic companies for investments in new, expanded, or reequipped clean energy manufacturing projects. The program is aimed at building capacity to meet this new and growing source of demand. Qualifying facilities manufacture a wide range of clean energy products, including wind turbines, solar panels, hybrid vehicle systems, carbon capture and sequestration systems, and biofuel refinery components, among others.

Brown has repeatedly called for the expansion and improvement of the 48C program. Earlier this year, Brown introduced the Security in Energy and Manufacturing (SEAM) Act. This legislation would extend and modify the successful manufacturing tax credit from the Recovery Act, which has run out of funds.  In the past year, Brown has held several roundtables with Ohio manufactures who received Recovery Act tax credits to improve the energy efficiency of their facilities and create new, clean energy manufacturing jobs.  The SEAM Act would promote more domestic manufacturing of clean energy technology.  

The SEAM Act also helps restore American's manufacturing base. By giving priority to U.S. production, the bill would ensure that our U.S. manufacturing base produces all parts in the clean energy supply chain. As clean energy becomes one of the world's largest industries, forecasted at over $2 trillion annually, clean energy manufacturing provides a significant opportunity for the U.S. to restore its manufacturing base and create good-paying jobs domestically.

On April 15, Brown led a letter with 10 U.S. Senators calling for climate legislation to provide assistance for manufacturers by expanding the 48C program. On April 7, Brown joined Ron Bloom, Senior Counselor for Manufacturing Policy, to hold a roundtable with central Ohio manufacturers at Edison Welding Institute in Columbus. Earlier that same week, Sen. Brown met with southeastern Ohio manufacturers at Thermo Fisher plant in Marietta. In late March, Governor Ted Strickland (D-OH) joined 19 Governors in a letter urging President Obama to expand the 48C program.

November 29, 2010

 

 

The Honorable Harry Reid                                         The Honorable Mitch McConnell

522 Hart Senate Office Building                                 361A Russell Senate Office Building

Washington DC, 20510                                               Washington DC, 20510

 

The Honorable Max Baucus                                       The Honorable Charles E. Grassley

511 Hart Senate Office Building                                 135 Hart Senate Office Building

Washington DC, 20510                                               Washington DC, 20510

 

Dear Senate Leaders,

 

We write to encourage you to include a $5 billion extension of the 48C Advanced Energy Manufacturing Tax Credit in any tax package that the Senate considers in the lame duck session.

 

As you know, the American Recovery and Reinvestment Act (ARRA) established Section 48C and allocated $2.3 billion in tax credits to the program.  In developing this program, the Senate Finance Committee took a critical step in addressing our “clean tech” trade deficit, by enhancing our domestic manufacturing capacity to supply clean and renewable energy projects with American-made components and equipment.  Through a competitive application process administered jointly by the Departments of the Treasury and Energy, the entire $2.3 million in tax credits was allocated earlier this year to 183 projects in 43 states.  Because the tax credits were worth 30 percent of each qualifying project, they leveraged a private capital total investment of nearly $7.7 billion in clean-tech manufacturing in the United States.  This investment is expected to create approximately 17,000 jobs in industries as diverse as solar, wind, geothermal, advanced batteries, biofuels, nuclear, and carbon capture and sequestration.

 

Interest in this tax credit far outpaced the $2.3 billion allotment, and the President has already echoed our call to expand this program.  A $5 billion expansion of this program would leverage billions of dollars in capital investment and create thousands of jobs.  Furthermore, the 48C program compliments another successful Recovery Act program known as the 1603 Treasury Grant Program by helping the clean energy sector build a manufacturing supply chain.  Together these two programs serve as an important mechanism to support our domestic clean energy manufacturing sector.

 

Without these important incentives, the United States risks losing these key investment to other countries with manufacturing and clean energy initiatives.  We are in a clean energy race, and the Advanced Energy Manufacturing Tax Credit is a vital tool to compete internationally, retain and create domestic jobs, and reduce our dependence on foreign energy.

 

Thank you for your consideration.

 

Sincerely,

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