Posting in Energy
The White House released details today of six new tax provisions, including one for clean energy manufacturers, that Obama called for in his State of the Union address.
The White House released today more details on the six new tax breaks for manufacturing that President Obama mentioned in his State of the Union address, including $5 billion in credits for clean energy manufacturers.
The Obama Administration, which will include the tax breaks in the 2013 budget set to be released next month, is already pushing Congress to act immediately on the provisions. The intent of the tax breaks is to encourage companies to keep jobs in the U.S. The White House also claims the package as a whole wouldn't add to the deficit.
The clean-energy tax break Obama proposed isn't new. The incentive, known as the Advanced Energy Manufacturing Tax Credit, was one of numerous Recovery Act-era investments aimed at creating jobs and pulling the country out of a recession. The popular and oversubscribed tax credit program has already awarded $2.3 billion in tax credits across 183 projects in the United States.
Obama's most recent proposal would extend the tax credit and provide an additional $5 billion. The White House says the $5 billion tax credit will drive nearly $20 billion in domestic clean energy manufacturing.
Companies that received clean-energy tax credits during the last round included $31.5 million credit for thin-film solar maker Miasole; $16.3 million in credits to First Solar to expansion its manufacturing facility in Ohio; and a whopping $141 million tax credit for Hemlock Semiconductor Corp. (a joint venture owned by Dow Corning, Shin-Etsu Handotai and Mitsubishi Materials), to expand a manufacturing plant that produces polysilicon used in the production of solar panels. The $1.2 billion plant, which will employ 500 people, is under construction and is scheduled to begin producing polysilicon in late 2012.
The other manufacturing tax credit proposals released today include:
- Remove tax deductions for moving operations abroad and give a 20 percent income tax credit for the expenses of moving operations back into the U.S.;
- Target an existing domestic production incentive on manufacturers who create jobs in the U.S. and double it for so-called "advanced manufacturing;
- $6 billion in credits ($2 billion per year for three years) to help finance projects in communities that have suffered a major job loss event;
- Allow companies to expense 100 percent of investments in plants and equipment, an incentive that would cost $4 billion in tax revenue;
- Close a loophole that allows companies to shift profits overseas from intangible property created in the U.S. The White House claims by closing the loophole it will raise $23 billion in tax revenue.
Photo: First Solar
Jan 25, 2012
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I'm curious - will companies that manufacture components for new nuclear power plants qualify for the tax credits? It would seem only fair since nuclear energy supplies more than 70% of the USA's clean, zero-carbon emission electricity.
For a planet that is clearly running out of fossil fuel energy...sustainable renewable energy is a partial solution that needs global attention to solve a global problem. I would feel much better if Americans were leading the world, to show how to turn this problem around. It would create American jobs & stop the unnecessary bleeding of American dollars to the foreign oil producers, who don't even like us. How about hearing from some positive bloggers out there who have something worthwhile to say...Anyone can be negative...it's just too easy.
He wants to end tax breaks for oil companies - American oil companies that have to compete in a world market against state-subsidised companies, and who give us gasoline prices 1/2 of EU prices - and then give them tax breaks for clean energy. Either he's an idiot or he thinks we all are.
Obviously "fair share" means redistribution....NOT everyone paying the same %. Seems to me "Fair Share" would be a flat tax, no matter who you are....
The administration lies to us, cheats our children, and tries to blow sunshine up our ass. Solar panels are too expensive right now for anyone to accept them, wind is not reliable enough, bioengineered algae is too expensive and too dangerous, the administration would rather play politics than drill or lay pipelines, the crybabies don't want nuclear. When we REALLY start running out of fossil fuels, the price will go up justifying the price of 'green' energy. You imply you are really concerned about bleeding American dollars overseas. I have to ask: What brand of car do you have? TV? Stereo? Ikea furniture? If you are really that concerned, set an example for others and BUY AMERICAN!