Senator Stabenow introduces new bill to boost clean energy and automotive manufacturing in America and create jobs in Michigan
The American Jobs in Energy Manufacturing Act will help manufacturers make clean energy parts, create good-paying jobs and address supply chain shortages
WASHINGTON — U.S. Senator Debbie Stabenow introduced her new bill to boost manufacturing by providing a 30% tax credit for manufacturers to retool or build new facilities to produce advanced energy parts or technologies. The American Jobs in Energy Manufacturing Act would incentivize manufacturers in Michigan to create jobs that draw on existing skilled workforces and reinvest in communities experiencing high unemployment.
This is part of Senator Stabenow’s American Jobs Agenda. Last week, Senator Stabenow announced her Make It in America Act to strengthen the country’s Buy American laws.
“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.
During the economic crisis in 2009, Senator Stabenow created the 48C Advanced Energy Manufacturing Tax Credit as part of the American Recovery and Reinvestment Act, which helped boost U.S. manufacturing. This new bill builds on the successful 2009 program by providing new resources for businesses that create jobs making a wide range of energy products such as automotive energy parts, batteries and components. Senator Joe Manchin (D-WV) is also an author of the bill and joined Senator Stabenow to introduce it.
The American Jobs in Energy Manufacturing Act of 2021 would:
— Strengthen American manufacturing by providing $8 billion for a 30% tax credit to manufacturers that retool, expand or build new facilities that make parts and technologies needed to reduce carbon emissions. Companies eligible to apply for the tax incentive include those making batteries, electric and fuel cell vehicles, semiconductor chips, components to produce renewable energy, carbon capture and many others. Half of the funding would be set aside for projects located in communities where coal mines or coal plants have been closed and did not receive the original 48C tax credit.
— Provide assistance to applicants and create jobs where they’re needed most. The bill provides new guidelines and technical assistance for projects in areas of the country that did not receive a 48C tax credit more than a decade ago.
The following organizations have endorsed the American Jobs in Energy Manufacturing Act: Third Way, BlueGreen Alliance, National Wildlife Federation, Natural Resources Defense Council, Sierra Club, Environmental Defense Fund, 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.