Several member companies of the National Electrical Manufacturers Association (NEMA) have been awarded a total of more than $120 million of American Recovery and Reinvestment Act (ARRA) funding.
President Obama announced awards of $2.3 billion in a new 30 percent manufacturing tax credit funded in ARRA. The act provides funding for competitively selected projects in “advanced energy projects” that re-equip, expand, or establish a manufacturing facility for specified energy categories.
The administration approved 183 manufacturing facilities in 43 states for the tax credit. NEMA member technology awards exceeded $120 million in projects in Indiana, Texas, Wisconsin, North Carolina, Ohio, South Carolina, Georgia, Illinois, and other states.
“We are very pleased with this announcement, which supports further investment in energy efficiency by manufacturers,” said Evan R. Gaddis, NEMA president and CEO. “NEMA members are leaders in innovative energy solutions for our country’s needs, and these funds will support additional manufacturing projects and create jobs.”
During the development of the legislation, NEMA successfully worked with Congress to expand the types of qualifying manufacturing facilities eligible for this “clean energy” credit to include investments in equipment for energy conservation, including Smart Grid and lighting technologies, as well as electric grid and energy storage. Other energy categories are solar, wind, geothermal, and other renewable energy equipment; fuel cells and micro-turbines; and plug-in electric vehicles and their components.
The $2.3 billion in tax credits were awarded on a competitive basis and assessed on criteria that included commercial viability, domestic job creation, technological innovation, and speed to project completion. In making the announcement, the administration estimated that more than 17,000 jobs will be generated, with additional private sector matching funding of $5.4 billion, yielding up to 41,000 additional jobs.
More than 500 applications exceeding $8 billion were received for consideration. Under the program, tax credits will be issued to companies and projects must be completed by February 17, 2013. The administration has requested an additional $5 billion from Congress to expand the 48C Tax Credit.
For more information, see www.energy.gov/news2009/8501.htm.
NEMA is the association of electrical and medical imaging equipment manufacturers. Founded in 1926 and headquartered near Washington, D.C., its approximately 450 member companies manufacture products used in the generation, transmission and distribution, control, and end use of electricity. These products are used in utility, industrial, commercial, institutional, and residential applications. The association’s Medical Imaging & Technology Alliance (MITA) Division represents manufacturers of cutting-edge medical diagnostic imaging equipment including MRI, CT, x-ray, and ultrasound products. Worldwide sales of NEMA-scope products exceed $120 billion. In addition to its headquarters in Rosslyn, Virginia, NEMA also has offices in Beijing and Mexico City.