Bill funds tax credit that could benefit biofuel, CCS projects
Sens. Debbie Stabenow, D-Mich., and Joe Manchin, D-W.V., on March 1 introduced the American Jobs in Energy Manufacturing Act of 2021, which aims to incentivize domestic manufacturing of advanced energy technologies.
The bill would provide $8 billion for a 30 percent tax credit to manufacturers that retool, expand or build new facilities that make parts and technologies needed to reduce carbon emissions. Half of the funding would be set aside for projects located in communities where coal mines or coal plants have been closed and did not receive the original 48C tax credit.
The original 48C advanced manufacturing tax credit was included as part of the American Recovery and Reinvestment Act in 2009. The new bill builds on that program.
Companies eligible to claim the credit include those that build new or retrofit existing manufacturing and industrial facilities to produce or recycle a wide range of energy products, including equipment for the production of low-carbon, low-emissions fuels, chemicals and products; renewable energy and energy efficiency equipment; or products or technologies that capture, remove, use or store carbon dioxide.
A spokesperson for Stabenow confirmed that biofuel production facilities and biorefineries that make qualified investments would be eligible to claim the tax credit, including those who make qualified investments in carbon capture systems.
A fact sheet and full copy of the bill are available on Manchin’s website.