31 May 2023
The Zero Emission Transportation Association (ZETA) welcomes the release of the 48C Advanced Energy Project Credit notice by the Treasury Department. The credit is a competitive tax credit program that incentivizes investment in advanced energy projects with the goal of expanding U.S. manufacturing, creating American jobs, reducing greenhouse gas emissions, and securing domestic supply chains for critical materials. Congress amended the program with the passage of the Inflation Reduction Act, allocating $10 billion for the competitive bidding process—$4 billion of which must be allocated to projects located in qualifying energy communities.
This announcement updates the guidance issued in February 2023, and clarifies how eligible applicants can access the first allocation of $4 billion in funding. Approximately $1.6 billion of that amount is allocated to projects located in qualifying energy communities—namely communities that were dependent upon now closed coal mines or retired coal-fired power plants for jobs and opportunity.
More information for potential applicants, including a 48C mapping tool and an upcoming informational webinar, is available on the Department of Energy’s 48C webpage.
In response to this announcement, Albert Gore, Executive Director of ZETA, released the following statement:
“The Treasury Department is taking an important step to increase domestic supply chain investment with today’s announcement. By designing the 48C Advanced Energy Project Credit to address key elements of the supply chain—including power electronics for EVs, EV battery components, magnets, and critical minerals—Congress and the Administration are prioritizing efforts that will advance our country’s EV manufacturing competitiveness, create thousands of good-paying American jobs in communities that need them the most, and put more EVs on our roads. ZETA looks forward to working with the Administration and industry to showcase how this credit can support investment in the domestic EV supply chain and result in real benefits for all Americans.”
ZETA | https://www.zeta2030.org/