U.S. Senator Joe Manchin (D-WV), Chairman of the U.S. Senate Energy and Natural Resources Committee, released the following statement on information released today by the U.S. Department of the Treasury, the U.S. Department of Energy (DOE) and the Internal Revenue Service (IRS) on provisions in the Inflation Reduction Act (IRA) to incentivize investment in coal communities. Today’s announcement includes the first $1.6 billion of the $4 billion total in funding that Chairman Manchin secured exclusively for energy manufacturing projects in communities with closed coal mines or retired coal-fired power plants. The Department of Energy also announced today that they will begin accepting applications for the Advanced Energy Manufacturing and Recycling Grants program, included by Chairman Manchin in the Bipartisan Infrastructure Law (BIL), which will provide up to $750 million in grants to small and medium sized manufacturers to build new or retrofit existing advanced energy manufacturing and recycling facilities in communities where coal mines or coal-fired power plants have closed.
“For generations, coal communities in West Virginia and across Appalachia have broken their backs mining the coal that has powered our nation and enabled us to become the superpower of the world. The investments I fought for in the Inflation Reduction Act ensure West Virginia’s proud energy producing legacy can continue by making our state one of the most attractive places to do business in the world. These incentives open West Virginia up to other energy sectors and manufacturers without costing the state a single dollar. And the $1.6 billion for coal communities announced today is just the first round of funding available through the 48C tax credit designed to help create new, good-paying energy jobs and ensure coal communities continue to play the critical roles of powering the U.S. I am also pleased to see the opening of applications for the Advanced Energy Manufacturing and Recycling Grants. Both programs will drive new investments in coal communities while setting us on the path to energy independence,” said Chairman Manchin.
The IRA required that at least $4 billion of the $10 billion 48C Qualifying Advanced Energy Project Credit be reserved for projects in coal communities. The program provides incentives for clean energy property manufacturing and recycling, industrial decarbonization, and critical minerals processing, refining and recycling.
More details below:
Qualifying Advanced Energy Project Credit
The first notice establishes the expanded Qualifying Advanced Energy Project Credit program under Section 48C of the Internal Revenue Code. This program renews and expands an investment tax credit initially included in the American Recovery and Reinvestment Act of 2009.
The program provides incentives for clean energy property manufacturing and recycling, industrial decarbonization, and critical materials processing, refining, and recycling. The notice provides a broad range of examples of projects eligible to apply for an investment tax credit of up to 30 percent, including manufacturing of fuel cells and components for geothermal electricity and hydropower, equipment for carbon capture, and critical minerals processing facilities.
The Inflation Reduction Act provided $10 billion in new funding for the Qualifying Advanced Energy Project Credit program. In the Inflation Reduction Act, Congress required that at least $4 billion be reserved for projects in communities with closed coal mines or retired coal-fired power plants.
The initial funding round outlined today will include $4 billion, with about $1.6 billion reserved for projects in coal communities.
The application process for the Qualifying Advanced Energy Project Credit program will begin on May 31, 2023.
To read more from the U.S. Department of the Treasury, click here.
Original source can be found here
