Biden administration to hand out $4B in advanced energy tax credits

Source: By Kelsey Tamborrino, E&E News • Posted: Monday, April 1, 2024

About $2.7B in the first round of credits will go toward U.S. clean energy manufacturing and recycling.

A close-up of coal.

About $1.5 billion will go to projects in coal communities, the Department of Energy said. Matthew Horwood/Getty Images

The Energy Department announced on Friday that more than 100 projects will receive the first $4 billion under an Inflation Reduction Act program to help spur domestic manufacturing of clean energy components and cut industrial emissions.

It is the latest announcement from the administration to support investment into communities whose economies have historically been dependent on fossil fuels and to build out U.S. manufacturing of critical clean energy equipment.

The projects — spanning 35 states — were selected to receive the advanced energy project tax credit that was extended through the IRA.

The tax incentive is allocated on a competitive basis. The IRA set aside $10 billion for the program, with at least $4 billion of that going toward communities with closed coal mines or coal plants. Projects selected under the program will receive an investment tax credit up to 30 percent.