IRS Releases $150M of Advanced Energy Tax Credits for Manufacturers – February 11, 2013 by Mike McGivney

On Thursday, February 7th, the IRS announced the release of $150 million of Advanced Energy Manufacturing Tax Credits under IRC 48C. These tax credits are available to taxpayers who invest in manufacturing property in order to re-equip, expand or establish a manufacturing facility for the production of property used in an advanced energy project.

Examples of advanced energy projects include:

  • Solar, wind, geothermal or other renewable energy projects
  • Electric grids and storage for renewables
  • Fuel cells and microturbines
  • Energy storage systems for electric or hybrid vehicles
  • Carbon dioxide capture and sequestration equipment
  • Equipment for refining or blending renewable fuels
  • Equipment for energy conservation, including lighting and smart grid technologies
  • Other advanced energy property designed to reduce greenhouse gas emissions may also be eligible as determined by the Secretary of the Treasury

The credit is 30% of the cost basis, and all credits are awarded on a competitive basis. Applications must be submitted by April 9th.

For more information, contact Mike McGivney at mmgivney@cohencpa.com or Adam Hill at ahill@cohencpa.com.

 

This communication is for information only, and any action should only be taken after a detailed review of the specific situation and appropriate consultation.

Notwithstanding that these materials do not constitute legal, accounting or other professional advice, as may be required by United States Treasury Regulations and IRS Circular 230, you should be advised that these materials are not intended or written to be used, and cannot be used by you or any other person, for the purpose of avoiding penalties that may be imposed under federal tax laws. No written statement contained in these materials may be used by any person to support the promotion or marketing of or to recommend any federal tax transaction(s) or matter(s) addressed in these materials, and any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor with respect to any such federal tax transaction matter.