You are here

Qualifying Advanced Energy Manufacturing Investment Tax Credit

Eligibility 
Commercial
Industrial
Savings Category 
Heat Pumps
Lighting
Fuel Cells
Fuel Cells using Renewable Fuels
Photovoltaics
Solar Water Heat
Maximum Rebate 

$30 million

Program Info
Funding Source 

The American Recovery and Reinvestment Act of 2009

Start Date 

02/17/2009

Program Type 
Industry Recruitment/Support
Rebate Amount 

30% of qualified investment

Provider 
IRS

2013 Update: Phase II of the Qualifying Advanced Energy Project is open. Required concept papers are due to the U.S. Department of Energy (DOE) by April 9, 2013. The U.S. DOE will review concept papers and select which companies will be allowed to submit a full application. Applications are due July 23, 2013. Concept papers and applications must follow guidelines and are to be submitted electronically via the EERE eXCHANGE web site (see web link above).

The American Recovery and Reinvestment Act of 2009 established an investment tax credit to encourage the development of a U.S.-based renewable energy manufacturing sector. The investment tax credit is equal to 30% of the qualified investment required for an advanced energy project that establishes, re-equips or expands a manufacturing facility that produces any of the following:

* Equipment and/or technologies used to produced energy from the sun, wind, geothermal or "other" renewable resources
* Fuel cells, microturbines or energy-storage systems for use with electric or hybrid-electric motor vehicles
* Equipment used to refine or blend renewable fuels
* Equipment and/or technologies to produce energy-conservation technologies (including energy-conserving lighting technologies and smart grid technologies)*

Qualified investments generally include personal tangible property that is depreciable and required for the production process. Other tangible property may be considered a qualified investment only if it is an essential part of the facility, excluding buildings and structural components.

Based on recommendations from the U.S. DOE, the U.S. Treasury Department (Treasury) will issue certifications for qualified investments eligible for credits to qualifying advanced energy project sponsors. After certification is granted, the taxpayer has one year to provide additional evidence that the requirements of the certification have been met and three years to put the project in service. There are provisions for credit recapture for non-compliance. There is a total of $150 million available for this phase of the Advanced Energy Manufacturing Tax Credit program.

In determining which projects to certify, the U.S. DOE and Treasury must consider those which most likely will be commercially viable, provide the greatest domestic job creation, provide the greatest net reduction of air pollution and/or greenhouse gases, have great potential for technological innovation and commercial deployment, have the lowest levelized cost of generated (or stored) energy or the lowest levelized cost of reduction in energy consumption or greenhouse gas emissions, and have the shortest project time.

Any taxpayer receiving this credit may not also receive the federal [http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=U... business energy investment tax credit].

''* This credit could be expanded in the future to include other energy technologies that reduce greenhouse gas emissions, as determined by the U.S. Treasury Department.''