US Treasury, IRS issue guidance to boost clean energy manufacturing
Date
5/20/2024 4:06:59 AM
(MENAFN) The US Treasury Department and the Internal Revenue Service (IRS) have issued additional guidance aimed at bolstering American clean energy manufacturing. This guidance broadens the scope of eligible projects to now include hydropower and pumped hydropower storage facilities. Additionally, it renames "utility scale photovoltaic system" projects as "ground-mount and rooftop photovoltaic system" projects and incorporates specific manufactured product components.
The guidance outlines that the domestic content bonus provided by the agencies applies to facilities and projects constructed using specified amounts of domestically produced steel, iron, and manufactured products. It stipulates that all manufacturing processes for steel and iron components must occur within the United States to qualify for the bonus, as stated in an announcement by the agencies.
Furthermore, under the Production Tax Credit for clean energy, facilities meeting domestic content criteria will receive a 10 percent bonus. Similarly, projects meeting the domestic content requirement will be eligible for up to a 10 percent point bonus under the Investment Tax Credit for clean energy.
"American workers and businesses are committed to making sure the United States economy benefits from the global transition to clean energy. That is why these incentives to bring clean energy manufacturing to America are jumpstarting investments across the country," stated US Deputy Secretary of the Treasury Wally Adeyemo. "This should help companies make more clean power investments using US-made equipment, generating new business for manufacturers and creating more good-paying jobs."
The action is aligned with President Joe Biden's economic agenda to enhance American manufacturing, particularly in the realms of iron and steel production. The goal is to empower American workers and companies, enabling them to play a pivotal role in advancing the clean energy economy, as emphasized by the agencies.
In tandem with these efforts, President Biden's administration implemented a tariff increase on Tuesday, affecting approximately USD18 billion worth of imports from China. These imports encompass a range of products, including steel, aluminum, semiconductors, solar cells, electric vehicles, and batteries. This move underscores the administration's commitment to bolstering domestic industries and fostering economic growth through strategic trade policies.
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