Albemarle gets tax credits from Biden’s clean energy push
TL/DR –
Albemarle, Cummins, and Siemens Energy are among the companies that have received tax credit under the Inflation Reduction Act (IRA). The companies are involved in 35 projects focused on electrical grid enhancements, critical minerals, and electric vehicle components, which received a total of $1.93 billion in tax credits. The tax credits, signed into law by US President Joe Biden in 2022, can cover up to 30% of the investment costs if they meet U.S. wage and apprenticeship requirements.
US Department of Energy Grants Tax Credits to Clean Energy Projects
Albemarle, Cummins, and Siemens Energy are among recipients of tax credits under the Inflation Reduction Act (IRA), says the latest data released by the US Department of Energy (DOE). A total of 35 projects encompassing a range of sectors such as electrical grid improvements, critical minerals, and electric vehicle components were allocated $1.93 billion in credits.
The IRA, a landmark $430-billion law enacted in 2022 by US president Joe Biden, has already allocated $4 billion in tax credits to over 100 projects. The goal is to stimulate clean energy manufacturing under the Qualifying Advanced Energy Project Tax Credit (48C). These incentives cover up to 30% of investment costs, provided that projects comply with U.S. wage and apprenticeship regulations. External link: [The Inflation Reduction Act policy details](http://example.com).
Investments in renewable and clean energy are crucial for achieving the climate objectives agreed upon at the 2015 UN Climate Change Conference in Paris. These targets aim to limit global warming, but the high cost of finance and materials, along with sluggish permissions processes, pose significant challenges to clean energy projects. Despite record investments in wind and solar power plants in the US last year, the rate of expansion does not meet the levels required to hit the country’s climate change goals.
The tax credits are distributed as follows: Albemarle will receive $9.4 million in credits to support lithium carbonate production at its Silver Peak project in Nevada; Cummins will obtain $10.6 million in credits for large-scale proton-exchange membrane electrolyzer manufacturing and testing at its Minnesota plant; and Siemens Energy will gain $18.3 million in credits to establish its first Large Power Transformer manufacturing facility in the US. Companies like MP Materials and Ballard Power Systems have also reported receiving credits under this program.
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