Gillibrand pushes "Make it in America" grants
The Advanced Energy Manufacturing Tax Credit currently provides a 30 percent credit for domestic companies for investments in new, expanded, or reequipped clean energy manufacturing projects. The program is aimed at building capacity to meet this new and growing source of demand. Qualifying facilities manufacture a wide range of clean energy products, including wind turbines, solar panels, hybrid vehicle systems, carbon capture and sequestration systems, and biofuel refinery components, among others. Through this credit, $2.3 billion in federal funds leveraged more than $5.4 billion of private investment that supported the creation of an estimated 17,000 jobs, plus 41,000 jobs through matching private investment.
The SEAM Act would extend the program and allow for grants in lieu of tax credits. This would enable the program to reach additional companies that would otherwise be unable to utilize the program, specifically new companies that do not yet have tax liabilities or companies struggling to access credit. Both the tax credit and grant would remain at 30 percent of the cost of the project. The SEAM Act also adjusts the selection criteria to give higher priority to facilities that manufacture, rather than assemble, goods and components in the U.S.
The Department of Energy (DOE) states that the program was more than three times oversubscribed. Nationwide, DOE deemed 418 projects eligible, which amounts to $5.8 billion in unfunded eligible applications. These manufacturers are waiting in the pipeline, ready to break ground soon with the funding.
The SEAM Act also helps restore American's manufacturing base. By giving priority to U.S. production, the bill would ensure that our U.S. manufacturing base produces all parts in the clean energy supply chain. As clean energy becomes one of the world's largest industries, forecasted at over $2 trillion annually, clean energy manufacturing provides a significant opportunity for the U.S. to restore its manufacturing base and create good-paying jobs domestically.
3. Encourage Private Investment into Manufacturing Communities
To leverage more private investment into manufacturers in some of New York’s hardest hit communities, Senator Gillibrand is pushing the New Markets Tax Credit Extension Act. The legislation would extend the New Markets Tax Credit program, which provides a 39 percent tax credit for Community Development Entities (CDEs) to help leverage additional private investments into local businesses.