Friday, February 22, 2013

Tax Credits for Investing in Clean Energy


            As we try to shift from non-renewable resource consumption to more sustainable clean energy practices, tax credits and financial rewards will provide the most incentive. Manufacturing clean energy benefits the environment, and can benefit American companies that take the initiative to explore clean energy. According to the Association of Corporate Counsel tax credits are being made available to alternative energy manufacturing facilities. The American Recovery and Reinvestment Act of 2009 established a tax credit for manufacturing facilities that invest in clean energy technologies, which provided a 30 percent investment tax credit to 183 domestic clean energy facilities. Originally the tax credited an estimated 2.3 billion dollars to qualifying manufacturers. As of February 15 The IRS released $150 million in remaining tax credits. The extra incentive tax credits were made available from previous awards that went unclaimed. Manufacturing facilities that qualify include solar, wind, geothermal or other renewable energy equipment, electric grids and storage for renewable energy; fuel cells and micro turbines, energy storage systems for electric or hybrid vehicles, equipment for blending renewable fuels, and carbon dioxide capture among other initiatives that will reduce green house emissions as determined by the Secretary of the Treasury.
            Other benefits of the reinvestment act include lower costs of energy, reduced air pollutants/emission of greenhouse gases. The job market will benefit as well.  Job creation will be direct and indirect; there will be potential for technological innovation and commercial deployment. As the clean energy industry grows it will require engineers to design projects and employees to complete the projects. Encouraging clean energy will stimulate the economy. The application process for these tax credits ends on July 23, 2103 and includes a concept paper that must be sent to the Department of Energy. Qualifying applicants will know as soon as November 15, 2013 the amount they will be rewarded.

Caroline Schenck
SOC202 blog
Submitted February 22, 2013 10:23 a.m.

No comments: