U.S. Senator Debbie Stabenow (D-MI) today led the following letter, signed by 22 of her Senate colleagues, to Senators Max Baucus and Chuck Grassley, chair and ranking member of the U.S. Senate Committee on Finance. In the letter, Senator Stabenow urged the inclusion of an expansion of the Advanced Energy Manufacturing Tax Credit in any job creation package.
Senator Stabenow co-authored the tax credit with Energy Committee Chairman Jeff Bingaman (D-NM) as part of the American Recovery and Reinvestment Act, which was signed into law last year. President Obama has already called on Congress to expand the Section 48C program by giving the Treasury and Energy Departments another $5 billion in credit authority. The credit provides businesses with an incentive to create American jobs and produce renewable energy technologies such as solar panels, wind turbines, and advanced batteries here in America and creates clean energy jobs.
Full text of the letter is below:
Chairman Max Baucus Ranking Member Chuck Grassley
United States Senate Committee on Finance United States Senate Committee on Finance 219 Dirksen Building 219 Dirksen Building
Washington, DC 20510 Washington, DC 20510
Senators Baucus and Grassley:
We write to request that you include in any job creation package or other suitable vehicle an expansion of the Section 48C Advanced Energy Manufacturing Tax Credit.
As you know, the American Recovery and Reinvestment Act (ARRA) established Section 48C and allocated $2.3 billion in tax credits to the program. In developing this credit, the Senate Finance Committee took a critical step in addressing our growing "clean tech" trade deficit, by enhancing our domestic manufacturing capacity to supply clean and renewable energy projects with American-made components and equipment. Through a competitive application process administered jointly by the Departments of the Treasury and Energy, the entire $2.3 billion in tax credits were allocated earlier this month to 183 projects in 43 states. Because the tax credits are worth 30 percent of each qualifying project, they will leverage private capital for a total investment of nearly $7.7 billion in clean-tech manufacturing in the United States. This investment is expected to create approximately 17,000 jobs in industries as diverse as solar, wind, geothermal, advanced batteries, biofuels, nuclear, and carbon capture and sequestration.
Interest in the tax credit far outstripped the $2.3 billion allocation, and President Obama has already called on Congress to expand the Section 48C program by giving the Treasury and Energy Departments another $5 billion in credit authority. This call complements bipartisan legislation, the American Clean Technology Manufacturing Leadership Act (S. 2857), which would provide an additional $2.5 billion in tax credits, enough to leverage $8.33 billion in new domestic investment.
Without this incentive, the United States risks losing these key investments to other countries with manufacturing and clean energy initiatives. We are in a clean energy race, and the Advanced Energy Manufacturing Tax Credit is a vital tool to compete internationally, retain and create domestic jobs, and reduce our dependence on foreign energy.
Thank you for your consideration.
Senator Debbie Stabenow (D-MI)
Senator Jeff Bingaman (D-NM)
Senator Ron Wyden (D-OR)
Senator Maria Cantwell (D-MA)
Senator John Kerry (D-MA)
Senator Tom Carper (D-DE)
Senator Charles Schumer (D-NY)
Senator Kent Conrad (D-ND)
Senator Sherrod Brown (D-OH)
Senator Herb Kohl (D-WI)
Senator Patrick Leahy (D-VT)
Senator Chris Dodd (D-CT)
Senator Kirsten Gillibrand (D-NY)
Senator Ted Kaufman (D-DE)
Senator Carl Levin (D-MI)
Senator Patty Murray (D-WA)
Senator Jeff Merkley (D-OR)
Senator Jeanne Shaheen (D-NH)
Senator Mary Landrieu (D-LA)
Senator Kay R. Hagan (D-NC)
Senator Barbara Boxer (D-CA)
Senator Bob Casey Jr. (D-PA)