Several programs have been announced to accelerate domestic clean energy manufacturing and ensure underserved communities benefit from the clean energy technologies.
The U.S. Department of Energy, the Treasury and the Internal Revenue Service will implement the Low-Income Communities Bonus Credit or (48(e)) and the Qualifying Advanced Energy Project Credit or (48C) programs, according to a Feb. 13 DOE news release. The programs are funded by the Inflation Reduction Act.
"Underserved communities have the people, the skills and the willpower, but often lack the opportunities and resources to invest in clean energy infrastructure to revitalize their local economies," Secretary of Energy Jennifer Granholm said in the release. "These transformative programs and grants will strengthen the nation ensuring U.S. workers and businesses lead us around the globe and deliver on the president’s promise to not leave communities behind during this critical energy transition.”
DOE also opened applications for the $750 million Advanced Energy Manufacturing and Recycling Grant Program for small- and medium-sized manufacturers, the release reported. The first funding opportunities invests $350 million for programs that will produce or recycle advanced energy property. The program will prioritize applications from minority-owned firms.
Under the Qualifying Advanced Energy Project Credit (48C) program, the DOE, Treasury and IRS also will release about $4 billion in tax credits for projects that expand clean energy supply chains and reduce greenhouse gas emissions at industrial facilities, according to the release.
The Low-Income Communities Bonus Credit Program (48(e)) will allocate bonus credits for projects that achieve at least 1.8 gigawatts of eligible solar and wind capacity per year to encourage clean energy investments in low-income communities, on Tribal land and within affordable housing, the release reported.
All of the initiatives aim to accelerate the transition to clean energy and promote equity and environmental justice, according to the release.
