Obama Endorses Extending Tax Credit

In the State of the Union Address and other appearances this week, President Obama is endorsing a proposal that would extend the advanced energy manufacturing tax credit.

The Security in Energy and Manufacturing (SEAM) Act, authored by U.S. Sen. Sherrod Brown (D-OH), is a job-creating clean energy tax cut, which has delivered nearly $125 million to seven Ohio manufacturers to help create clean energy jobs, provides investment tax credits of 30 percent for facilities that manufacture energy equipment. Currently, 70 percent of clean energy components are manufactured outside of the United States.

“We can’t trade a dependence on foreign oil for a dependence on foreign-made sources of energy,” Brown said. “It’s unacceptable that 70 percent of clean energy components are made outside of the U.S. Extending the Advanced Energy Manufacturing Tax Credit will help more American manufacturers create jobs through the production of cutting-edge energy technologies.”

The initial tax credit, which was included in the Recovery Act, supported seven Ohio projects and dozens more eligible projects applied for funding but were denied due to a lack of funds. The Department of Energy (DOE) states that the program was more than three times oversubscribed. Nationwide, DOE deemed 418 projects eligible, which amounts to $5.8 billion in unfunded eligible applications. These manufacturers are waiting in the pipeline, and would be ready to break ground soon after they receive funding.

To be eligible for the tax credit, manufacturers must produce solar, wind, and geothermal energy equipment; fuel cells, microturbines, and batteries; electric cars; electric grids; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions. The SEAM Act is also cosponsored by Senators Debbie Stabenow (D-MI), Maria Cantwell (D-WA), and Bob Casey (D-PA).

Energy, Legislation, politics