The United States Department of Energy (DOE), the U.S. Department of Treasury, and the Internal Revenue Service (IRS) jointly announced a $4 billion tax credit allocation under the Qualifying Advanced Energy Project Tax Credit (48C). With over 100 projects in its purview, this initiative is aimed at propelling domestic clean energy manufacturing and mitigating greenhouse gas emissions in industrial settings.
The Inflation Reduction Act, a part of President Biden's funding initiatives, supports a comprehensive program that spans businesses of all sizes and governmental levels. These entities are eligible to qualify for a 30% investment tax credit, contingent upon meeting wage and apprenticeship standards. The DOE Office of Manufacturing & Energy Supply Chains (MESC) oversees this program on behalf of the IRS and Treasury. According to a press release by DOE, Round 1 allocation under § 48C Program emphasizes clean energy manufacturing, critical materials recycling, and industrial decarbonization projects. These efforts aim to bolster the deployment of clean energy and create quality jobs.
"From direct grants to historic tax credits, the President’s Investing in America agenda is making the nation an irresistible place to invest in clean energy manufacturing," said U.S. Secretary of Energy Jennifer M. Granholm in a press release by DOE. She further added that "The President’s agenda places direct emphasis on communities that have traditionally powered our nation for generations, helping ensure those communities reap the economic benefits of the clean energy transition and continue to play a leading role in building up the next wave of energy sources."
Founded in 2022, MESC leads U.S. energy initiatives with $20 billion in investments in manufacturing capacity and workforce development. MESC informs strategic acquisitions across both DOE and the U.S. Government by providing analytical tools and running investment programs. Additionally, according to information from the MESC About webpage provided by DOE, MESC collaborates on financing programs including an investment tax credit for energy manufacturing, aiming to strengthen and scale America's clean energy supply chains.
