The U.S. Department of Energy and the Department of Treasury announced on Thursday they will deploy $2.3 billion in tax credits from stimulus money for manufacturers of clean energy equipment.
Companies that apply for the credits would receive payments within 180 days of filing the application. The limit is set for two years or until the limit of $2.3 billion is reached. The program is authorized by the stimulus package, the agencies said.
â€œThis partnership between Treasury and Energy adds an important new dimension to the incentives created in the Recovery Act to increase US manufacturing output, improve energy efficiency, and develop alternative sources of energy,â€ U.S. Treasury Secretary Timothy Geithner said in a statement.
Companies that qualify include manufacturers of solar, wind, and geothermal energy equipment; fuel cells, microturbines, and batteries; electric cars; electric grids to support the transmission of renewable energy; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions.
The head of the Energy Department, Steven Chu said the credits would boost manufacturing jobs in the country.
The DOE said tax programs have provided successful incentives, citing approximately $550 million in renewable energy tax credits were provided to 450 businesses in 2006.