Dive Brief:
- Steelmaker ArcelorMittal, polysilicon manufacturer Highland Materials and lithium battery separator maker Entek were among the bigger recipients of $1.9 billion in 48C tax credits to 35 clean energy manufacturing projects across 20 states.
- Projects that received tax credits as part of the Inflation Reduction Act focus on four key topics: clean energy and vehicles, critical minerals, grid components and industrial carbonization.
- The investment tax credit can cover up to 30% of qualifying projects, which must engage in workforce development and apprenticeship programs, according to the Department of Energy’s release last week.
Dive Insight:
The 35 projects are part of the department’s original funding announcement on March 29, which allocated approximately $4 billion worth of 48C credits to over 100 projects.
By law, the department cannot release the company names or tax credit amounts until after projects are certified, which can take up to two years. Ahead of that certification, these 35 projects voluntarily self-disclosed their tax information to share publicly.
Clean energy, clean vehicle manufacturers lead tax credit allocations
The top 10 projects that received 48C tax credits last month under the Inflation Reduction Act.
Fourteen of the disclosed projects are building new or expanded clean energy and clean vehicle manufacturing facilities. Highland Materials received $255.6 million in tax credits for solar-grade polysilicon production at its Surgoinsville, Tennessee, facility.
Eight projects will focus on manufacturing critical grid components. With $18.3 million in tax credits, Siemens Energy is working to address the transformer shortage by building its first U.S. large power transformer manufacturing facility in North Carolina.
Five projects aim to increase U.S. production of critical minerals and materials. ArcelorMittal Calvert, the largest awardee out of those disclosed, received about $280.5 million for building an advanced electrical steel manufacturing facility in Calvert, Alabama.
Chemical manufacturer Albemarle also received a $9.4 million tax credit to expand its billion-dollar Silver Peak Lithium Project in Nevada.
Lastly, eight projects will focus on decarbonizing industrial manufacturing. Topsoe will use nearly $135.9 million in tax credits to make electrolyzer cell stacks for clean hydrogen production in Chester, Virginia.
The DOE and the Internal Revenue Service plan to release guidance for the second round of the 48C program in the coming weeks, with applications open by the summer.
