Final tax credit rules from the U.S. Treasury Department will expand the clean energy manufacturing base in America, officials said Oct. 24.
U.S. Treasury Secretary Janet Yellen said the new final rules for the Advanced Manufacturing Production Credit released by the Treasury Department and the IRS will help spur the growth of American clean energy manufacturing, creating new jobs and further strengthening the country’s energy security.
“The Biden-Harris Administration’s economic agenda is driving a manufacturing boom across the country that I’ve seen first-hand in North Carolina, Kentucky, and Georgia. These investments are creating good-paying jobs, strengthening U.S. supply chains, and lowering costs for American consumers and businesses,” Yellen said. The final rules will help companies continue to invest and innovate in the United States as it builds the clean energy economy, she added.
Officials said the credits will help to level the playing field for American companies to onshore production of clean energy technologies like solar and wind component, batteries and energy storage, and critical minerals. The final rules will accelerate the buildout of the domestic mineral supply chains by allowing manufacturers to include the costs of materials and extraction in production costs. The change will allows more investment into critical mineral extraction and processing, officials said.
“As part of the resurgence in American manufacturing supported by the Biden-Harris Administration, today’s advanced manufacturing tax credit final rule will catalyze business investment in the clean energy technologies of the future, help secure domestic critical minerals supply chains, and put American workers and businesses in a position to outcompete China,” National Economic Advisor Lael Brainard said.
The final rules clarify definitions, while confirming credit amounts for eligible components. Additionally, the rules define terms to incentivize production in the U.S. and to clarify the circumstances under which taxpayers can claim the credits.