New tax credit incentivizes clean manufacturing, particularly in coal communities
Casey fought to prioritize “energy communities” in Inflation Reduction Act
Washington, D.C. – Today, U.S. Senator Bob Casey (D-PA) announced the implementation of an Inflation Reduction Act provision to provide tax credits to manufacturers in coal communities. The tax credits can be used to build, expand, or retrofit clean manufacturing facilities, recycling, industrial decarbonization, and more. Senator Casey fought for provisions in the Inflation Reduction Act to incentivize clean energy projects in “energy communities,” areas whose economies and jobs are or were dependent on the coal, oil or natural gas energy sectors. The tax credit announced today will bring good-paying energy jobs to communities that have powered the U.S. for generations. According to one study, this credit is projected to create 92,000 new jobs over the next ten years, including 36,800 in former coal communities.
“As we work to build a clean energy economy, I fought to ensure that manufacturing jobs end up in the communities who powered our Nation for generations,” said Senator Casey. “These credits will bring new, cutting-edge jobs to the Pennsylvania’s coal country, revitalizing our communities and helping our workers to earn the family-sustaining wages they deserve.”
The Inflation Reduction Act provided $10 billion in new funding for the Qualifying Advanced Energy Project Credit program, including at least $4 billion for projects communities with closed coal mines or retired coal-fired power plants. The tax credits will be administered by the Treasury Department and the Internal Revenue Service, in close collaboration with the Department of Energy. The initial funding round outlined today will include $4 billion, with about $1.6 billion reserved for projects in coal communities. The application process for the Qualifying Advanced Energy Project Credit program will begin on May 31, 2023. The Treasury Department’s announcement and information on applying for the tax credits can be found here.
