Ada Recinos, Deputy Press Secretary, Federal Communications, ada.recinos@sierraclub.org
Washington, DC – Today, the U.S. Department of Energy announced the details of 35 projects across 20 states that received a total of $1.93 billion in allocations of the Qualifying Advanced Energy Project Credit (48C). The companies behind these projects committed to invest many billions more in order to qualify. 48C is an allocated tax credit funded by President Biden’s Investing in America agenda through the Inflation Reduction Act, aimed at accelerating clean energy manufacturing and reducing greenhouse gas emissions at industrial facilities.
The projects announced today are addressing critical needs across the clean energy economy, including grid components (e.g., transformers), electric vehicle components and chargers, solar components, clean steel, critical materials processing and recycling, and other clean energy products. In order to receive the full 30 percent investment tax credit, projects receiving a 48C tax credit must meet prevailing wage and registered apprenticeship requirements.
In response to the announcement, the Sierra Club issued the following statement:
“We are very encouraged to see the Biden-Harris Administration’s focus on an industrial decarbonization strategy that prioritizes rebuilding our domestic manufacturing sector,” said CeCe Grant, Industrial Transformation Campaign Director. “We’re prepared to support communities on the fence lines, alongside the workforce that drove our previous energy endeavors as we steer towards a more sustainable energy future.”
The 48C program will be a $10 billion federal investment in clean energy manufacturing. These announced projects were in the $4 billion first round, which received applications for $42 billion worth of federal investments. Unlike most tax credits, 48C is capped. The significant private-sector interest in clean energy manufacturing, above and beyond what Congress authorized the credit to offer, is likely to continue into the next round this summer, which will result in $6 billion of further federal funding.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.