Manchin, Stabenow Unveil Bill To Incentivize Domestic Manufacturing And Reinvestment In Rural America
American Jobs in Energy Manufacturing Act of 2021 would provide tax credits for energy manufacturers to spur reinvestment in rural areas impacted by economic downturn
Washington, DC – U.S. Senators Joe Manchin (D-WV) and Debbie Stabenow (D-MI) today unveiled the American Jobs in Energy Manufacturing Act of 2021, which would incentivize domestic manufacturing of advanced energy technologies with targeted investment in rural communities across America that have suffered from a decline in manufacturing and traditional energy sector jobs.
“The downturn of the coal industry has left many Americans without the good-paying jobs they once relied on and, more often than not, a lack of new opportunity. The negative impact is felt by local economies across the country. I believe that tax credits to help incentivize the transition to a cleaner energy future should be targeted to drive reinvestment in the communities who are the most impacted by that transition, and that’s exactly what the American Jobs in Energy Manufacturing Act of 2021 will do,” said Senator Manchin, Chairman of the Senate Energy and Natural Resources Committee. “This bill will help revitalize these areas by making smart changes to the 48C Advanced Energy Manufacturing Tax Credit to drive investment in these communities, strengthen domestic supply chains, create additional clean energy manufacturing jobs, and aid the nation’s economic recovery. I urge my colleagues on both sides of the aisle to join Senator Stabenow and me in bringing those jobs back to the United States and creating economic growth across the nation. I look forward to the Senate passing our legislation this Congress.”
“Transitioning to a clean energy economy creates significant opportunities for Michigan to put people to work in good-paying jobs in industries that are key to combatting the climate crisis. Unfortunately, we have fallen behind countries like China, and the COVID-19 crisis has exposed gaps in our domestic manufacturing. The good news is, we can do something about it. I introduced the American Jobs in Energy Manufacturing Act to address our supply chain shortages and drive investment in clean energy, automotive and battery manufacturing. This bill ensures that America – not China – will lead the way in the clean energy revolution,” said Senator Stabenow.
“The 48C tax credit is a smart, job-creating policy right when we need it most. A previous version of this tax credit helped accelerate the nation’s recovery from the Great Recession, unlocking investment in 130 manufacturing facilities across 43 states to put Americans to work in the clean energy economy. With the American Jobs in Energy Manufacturing Act, Senators Manchin and Stabenow have modernized this proven economy-boosting tool to meet today’s needs, keep US industries and workers ahead of the curve in clean energy technologies, help facilities significantly reduce their pollution, and spur investment in communities impacted by global shifts in energy and manufacturing. This is exactly the type of clean energy innovation bill Congress should be considering to get people back to work in good-paying jobs, encourage private-led investments in clean energy, and boost American competitiveness against other manufacturing powerhouses like China,” said Ryan Fitzpatrick, Director of the Climate and Energy Program, Third Way.
“If we want to build a clean, thriving, and equitable economy we need to reinvest in working people and American manufacturing,” said Jason Walsh, Executive Director of the BlueGreen Alliance. "The 48c program is a proven policy that spurs companies to retool, expand, and locate factories here to build the technology we need for a clean economy here at home and to supply the world. The American Jobs in Energy Manufacturing Act of 2021 can help jumpstart our economic recovery, ensure we are building America’s energy future here at home, reduce industrial emissions, and deliver good union jobs for workers and the communities that need it the most—including those impacted by changes in our nation’s energy systems.”
“This landmark legislation keeps faith with the essential idea that clean energy solutions need to work for every community across the country — and cannot leave frontline and coal communities behind. This legislation will direct tax credits to communities and ultimately hardworking families in places like West Virginia that have lost energy jobs over the past few years. We will work with Congress to not only support this critical policy, but also to ensure the credits go to the most worthy projects,” said Shannon Heyck-Williams, Director of Climate and Energy Policy at the National Wildlife Federation.
“EDTA applauds the leadership of Senators Manchin and Stabenow in promoting investment in electric drive vehicles and infrastructure. Through an enhanced Section 48C investment tax credit, the American Jobs in Energy Manufacturing Act will accelerate economic opportunity throughout the electric transportation value chain, while building US leadership in the global imperative to reduce greenhouse gas emissions,” said Genevieve Cullen, President, Electric Drive Transportation Association.
“The American Jobs in Energy Manufacturing Act is a critical linkage between a sustainable energy future and the domestic job creation needed to get there. The Zero Emission Transportation Association thanks Senators Manchin and Stabenow for their commitment to domestic manufacturing and their leadership in driving an advanced energy and clean vehicle economy that meets every community's needs,” said Joe Britton, Executive Director, Zero Emission Transportation Association.
“Thousands of laid-off workers in America’s coalfields are suffering right now because there are no good jobs where they live that can compare with those they lost. For a true energy transition in this country to work, there must be well-paying, union jobs available for dislocated workers to move into. This legislation will encourage the creation of those jobs and provide a much-needed ray of hope for dislocated miners and other traditional energy workers, their families and their communities,” said Cecil Roberts, President of the United Mine Workers of America.
“The Motor & Equipment Manufacturers Association (MEMA) applauds Sens. Joe Manchin and Debbie Stabenow for introducing the American Jobs in Energy Manufacturing Act. Motor vehicle suppliers lead the way in innovative emissions technology development and make significant technology investments for future emissions requirements. Given the substantial risks taken on by suppliers, the 48C incentives envisioned in the bill would be extremely beneficial to the industry,” said Ann Wilson, Senior Vice President, Government Affairs, MEMA.
The following organizations have endorsed the American Jobs in Energy Manufacturing Act of 2021: Third Way, BlueGreen Alliance, National Wildlife Federation, Natural Resources Defense Council, Sierra Club, Environmental Defense Fund, American Automotive Policy Council, United Steelworkers, Motor and Equipment Manufacturers Association, Electric Drive Transportation Association, Zero Emission Transportation Association, Stellantis, United Mine Workers of America, Ford Motor Company, General Motors, Information Technology Industry Council, League of Conservation Voters, American Automotive Policy Council, and Alliance for Automotive Innovation.
The American Jobs in Energy Manufacturing Act of 2021 would:
- Invest $8 Billion in American Manufacturing and Industry which would be available to manufacturers and other industrial users to retool, expand, or build new facilities that make or recycle energy-related products.
- Includes a $4 billion carve out for use in communities where coal mines have closed or coal power plants have retired (that have not previously received the §48C tax credit).
- Build New or Retrofit Existing Manufacturing and Industrial Facilities to Produce or Recycle a Wide Range of Energy Products, Including:
- Advanced electric grid, energy storage, and fuel cell equipment
- Equipment for the production of low-carbon, low-emission chemicals, fuels, and related products
- Renewable energy and energy efficiency equipment, from insulation to geothermal drills
- Products or technologies that capture, remove, use or store carbon dioxide
- Advanced light-, med-, and heavy-duty vehicles, components, and related infrastructure
- Provide Assistance to Applicants and Creates Jobs Where They’re Needed Most:
- Provides new guidelines and technical assistance to aid applicants in states that have not accessed the §48C manufacturing tax credit in the past.
- Promotes domestic job creation that draws on existing skilled workforces, particularly workers dislocated from manufacturing, coal mining, or retired coal power plants.
- Promotes reinvestment in communities experiencing high unemployment.
Background information on the American Jobs in Energy Manufacturing Act of 2021 can be found here.
Bill text can be found here.
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