automakers get $50M in tax credits for green energy efforts

from The Detroit News;
Two U.S. automakers will receive $50 million in tax credits to help build greener vehicles under a tax provision in the 2009 stimulus.
The Energy Department said it was awarding $150 million through the Advanced Energy Manufacturing Tax Credit for various green energy efforts to 12 firms — tapping funds that were awarded but not used. Ford Motor Co. will receive a $30 million credit while General Motors Co. will receive a credit worth more than $20 million.
“Cost-effective, efficient manufacturing plays a critical role in continuing U.S. leadership in clean energy innovation, and the tax credits announced today will help reduce carbon pollution from our vehicles and buildings; create new jobs and supply more clean energy projects in the United States and abroad with equipment made in America,” said Energy Secretary Ernest Moniz.
It’s not sure how big an impact the credits will have on either automaker’s immediate bottom line.
GM pays no federal taxes — and has billions of dollars in unused credits that it was allowed to keep when it exited bankruptcy in 2009 as a new company. Ford has also paid little or no federal tax in recent years because of billions of dollars in prior year losses. The green energy tax credit is not refundable but can be carried forward to future tax years.
“This support will help Ford and GM expand their clean energy manufacturing and create jobs here in Michigan,” said Stabenow. “My initiative is helping clean energy manufacturers in Michigan and across the country invest in innovative new technologies that will help build 21st century manufacturing jobs. Other countries are investing heavily in clean energy technologies, and we have to make sure our businesses and workers have the tools they need to compete and win in the global economy.”
Ford was awarded its credit to expand production capabilities at its Michigan Assembly Plant in Wayne, which has transitioned from full-size truck and SUV production to a facility to manufacture multiple electric vehicle lines. GM was awarded its credit to further expand production capabilities at its Detroit-Hamtramck Assembly Plant where the plug-in hybrid Chevrolet Volt and Cadillac ELR are manufactured.
The Obama administration has previously asked Congress for more funding for the program.
The Advanced Energy Manufacturing Tax Credit authorized Treasury to provide companies with an investment tax credit of 30 percent to build, expand, or re-equip manufacturing facilities to produce clean energy technologies such as solar panels, wind turbines and advanced batteries. Companies had to apply to the IRS to receive the credit and had to be specifically approved.
Funded at $2.3 billion, the tax credit was made available to 183 domestic clean energy manufacturing facilities during the first phase of the program. “Today’s awards, or Phase II, were launched to utilize $150 million in tax credits that were not used by the previous awardees and support projects that must be placed in service by 2017,” the Energy Department said.
Other projects winning funding: Carrier Corp. will expand production at its Indianapolis facility with a $5.1 million credit to meet increasing demand for its eco-friendly condensing gas furnace product line.Corning Inc. received $30 million in credits to expand the manufacturing capacity of its diesel emissions control products facility in Erwin, New York.

From The Detroit News:

Written by CCAR

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