The U.S. Department of the Treasury today released new guidance for Section 45X of the U.S. Federal Tax Code, an uncapped production tax credit meant to grow domestic manufacturing for solar, wind, batteries, and critical materials such as aluminum. According to researchers at the University of Massachusetts-Amherst’s Political Economy Research Institute, the 48C and 45X tax credits have the potential to create 670,000 new manufacturing jobs. The 45X tax credit will also make clean energy component manufacturing more globally competitive.
The guidance makes primary aluminum smelters eligible to receive the credit, significantly boosting domestic producers. This could help reverse decades of decline in the industry and ensure the United States has a stable supply of this important clean energy material.
Following the announcement from the Department of the Treasury, the BlueGreen Alliance released a statement from Executive Director Jason Walsh:
“Because of 45X, the cost of domestically manufactured clean energy goods will fall below the price of imports. This is the gamechanger our country needs to build a vibrant clean economy. We must build reliable supply chains here at home where we can use cleaner processes to avoid shipping bottlenecks and imports from countries with poor labor practices. This tax credit will transform our manufacturing base by linking climate action with high-paying manufacturing jobs.
“The Department of the Treasury has done an excellent job setting this program up for success. I can’t think of a better way to wrap up the year.”