U.S. Treasury Allocates $6 Billion to Support Clean Energy and Decarbonization Projects
Key Ideas
- Over $6 billion allocated in the second round of the program, bringing total investment to $10 billion for clean energy projects.
- Program focuses on clean energy manufacturing, recycling, critical materials processing, and industrial decarbonization across more than 30 states.
- Expectation of creating 30,000 construction jobs, with a significant portion in energy communities, and reducing emissions by 2.8 million tons of CO2.
- Strong industry interest reflected in oversubscribed demand with 800 concept papers submitted requesting $40 billion in credits.
The U.S. Department of the Treasury and IRS have allocated $6 billion in tax credit allocations for the second round of the § 48C Qualifying Advanced Energy Project Tax Credit Program. This funding, part of the Inflation Reduction Act's $10 billion investment, supports clean energy, critical materials processing, and industrial decarbonization projects. In Round 2, over 140 projects were funded, bringing the total to around 250 projects. The program targets various sectors, including clean energy manufacturing, recycling, critical materials processing, and decarbonization, with a focus on designated energy communities. Projects are expected to create jobs, reduce emissions, and enhance economic resilience. The oversubscribed demand, with over 800 concept papers submitted, highlights strong industry interest. Successful projects will contribute to a sustainable energy future and leverage over $44 billion in total project investments nationwide.