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More than 70 percent of the components of clean energy systems are produced outside the United States. Even though wind power technologies were first developed just 20 miles down the road from where I live in Avon (Ohio), China and Germany lead the world in its production. That means our businesses and workers are not making the parts that can power American manufacturing into the clean energy economy. If we do not act, the equation is simple: we will replace a dependence on foreign oil with a dependence on Chinese wind turbines and other foreign-made sources.
This is unacceptable. Ohio has the talented workers, existing infrastructure, and manufacturing innovation to build engines for fuel efficient cars, windshields for solar panels, and gear boxes for wind turbines. We just have to make sure our businesses have the tools they need to transition to the clean energy economy.
One tool that will help us compete with the rest of the world is the 48(c) Advanced Energy Manufacturing tax credit, which was included in the Recovery Act. Earlier this year, the first wave of funding under this successful program awarded $2.3 billion in tax credits to businesses nationwide. It supported hundreds of manufacturing facilities and will create an estimated 17,000 jobs and an additional 41,000 jobs with matching private investment.
That is the critical part of the 48(c) program – it leverages public incentives to attract private sector investment. That means government and business working together to create jobs and build our clean energy economy.
Seven Ohio companies were awarded more than $125 million in initial 48(c) funding. These companies and their workers – in Bedford, Bucyrus, Circleville, Dayton, Findlay, Perrysburg, and Toledo – will re-tool factories to build clean energy products from wind turbine bolts to energy-efficient lamps and home appliances to state-of-the-art solar panel technologies.
More than 500 applications were received with tax credit requests totaling over $8 billion. But only $2.3 billion was available. Clearly there is a backlog of strong applications – that means the demand is there.
To meet the demand, I’ve been working with the Obama Administration and Senate colleagues to expand the 48(c) program by $5 billion – so instead of turning worthy companies down; we can encourage more to apply.
I have introduced the Security in Energy and Manufacturing (SEAM) Act, which would not only increase funding for the 48(c) program, but improve it by allowing companies to receive grants or tax credits for advanced energy manufacturing. Creating grants means investing in more companies – especially small and medium-size manufacturers that do not have tax liabilities or companies that struggle to find credit in the tight financial market. The SEAM Act would further promote U.S. clean energy manufacturing and ensure our manufacturers produce all of the component parts in the clean energy supply chain.
An expanded 48(c) program and the SEAM Act are important steps toward creating good-paying jobs and innovative clean energy technologies here at home. They are part of a manufacturing strategy that recognizes Ohio’s manufacturers can compete with anyone, so long as they have the tools to succeed and a level playing field on which to compete.
Ohio has a strong history of manufacturing and cutting-edge entrepreneurs that can lead the nation in the clean energy economy. It matters – for our economy and our middle class – that we strengthen the backbone that will support our future prosperity.
Sincerely, Sherrod Brown
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I am so proud to say Sherrod Brown is my Senator! Thank you Senator Brown!
:yourock:
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