The Biden administration has announced USD4bn in tax credits for more than 100 projects across the US that support the development of clean energy supply chainand industrial decarbonization, as reported by ESG Today on April 2. The substantial grants are funded by the Inflation Reduction Act (IRA) and channeled through the Qualifying Advanced Energy Project Credit (48C) program. Under the 48C program, advanced energy projects meeting specific criteria set by the US Department of Energy (DOE) can receive investment tax credits of up to 30%. Among the USD4bn granted in the first round of allocations, about USD2.7bn has been designated for clean energy manufacturing and recycling projects, USD800m for critical materials recycling, processing, and refining projects, and USD500m for industrial decarbonization projects.

The 48C program aims to accelerate a transition to a clean, secure, affordable, and resilient energy system, cut industrial greenhouse gas emissions, and create high-quality jobs across the country. Established under the 2009 American Recovery and Reinvestment Act, the initiative received an additional USD10bn under the 2022 IRA that also targets boosting domestic production of clean energy technologies. The DOE disclosed that it received 250 applications from projects, requesting a total of USD13.5bn in tax credits. Furthermore, the Department of Treasury (DOT) is set to issue a notice for the second round of allocations in the coming months.

Sources:

Biden Administration Allocates $4 Billion Tax Credits to Drive Clean Energy Supply Chain

https://www.energy.gov/articles/biden-harris-administration-announces-4-billion-tax-credits-build-clean-energy-supply

https://www.pv-tech.org/us-us4-billion-tax-credits-48c-scheme/