Solar Manufacturing Tax Incentive

The United States continues record-setting growth in renewable energy project construction. Even as the U.S. maintains a positive trade balance as a net exporter of solar materials, a stronger and more competitive domestic manufacturing base will support more robust job creation and economic growth. Limited, short-term federal tax incentives like the Section 48C Advanced Energy Manufacturing Tax Credit ("48C") jump-started recent investments in new domestic plants, as well as expansions of existing facilities. The oversubscribed program lacks sufficient funding to meet company demand, but new legislation could provide the support necessary to spur thousands of new jobs and rebuild U.S. manufacturing's global competitiveness.

Advanced Energy Manufacturing Tax Credit (Section 48C)

The 2009 American Recovery and Reinvestment Act (ARRA) included a competitive tax credit capped at $2.3 billion in total tax expenditures for advanced energy manufacturing projects (new code Section 48C). Over 500 applications were submitted, totaling over $8 billion and oversubscribing the program by a ratio of more than 3 to 1. Credits were awarded to 183 separate renewable energy projects across the United States. More than fifty solar facilities received awards, or 27% of the total number of facilities selected and 50% of the $2.3 billion made available (see the list of awards for solar here). Facilities are located in at least 21 states and include PV, CSP, and Solar Heating & Cooling technologies.

SEIA continues to advocate for additional funding for the successful 48C tax credit to provide additional incentives for investors to increase U.S. domestic manufacturing capacity.

Read SEIA's background memo on the manufacturing incentives.