The U.S. Department of Energy has announced a new tax credit program that can help manufacturers in qualified Ohio counties save money on energy efficiency upgrades and clean energy investments.

The Qualifying Advanced Energy Project Credit Program (also known as the 48C Tax Credit) provides up to $6 billion to help manufacturers across the United State manage the costs of qualified projects. Manufacturers must be located in a qualified “Energy Communities Census Tract.” Applications for the program are due by June 21, 2024.

First, determine if your project is in an eligible community. For Ohio manufacturers, the following counties have eligible census tracts:

You can enter your project’s address on the approved map from the U.S. Department of Energy to verify eligibility.

Second, review the list of eligible projects. Most manufacturers investing in ways to lower their carbon footprint are likely to qualify. Specific projects must fit into one of these three categories:

• Clean Energy Manufacturing and Recycling Projects: purchasing equipment, expanding a manufacturing facility, or building a new manufacturing facility that generates or recycles energy-intensive materials.

• Industrial Decarbonization Projects: Retrofitting or installing equipment in an industrial or manufacturing facility that lowers greenhouse gas emissions. Sectors that use cement, iron, steel, aluminum, and chemicals are ideal applicants.

• Critical Materials Projects: Purchasing equipment, expanding a manufacturing facility, or build a new manufacturing facility that produces materials that have a high risk of supply chain distribution or technologies that produce, transmit, store, or conserve energy.

Third, submit your application in the 48C Portal by June 21, 2024. The Portal can be accessed on the U. S. Department of Energy’s website and outlines the information required to submit for consideration. An applicant guide is provided with specific details.

If your project is approved, you will have two years to complete the installation and/or construction and provide proof to the U.S. Department of Energy and the Internal Revenue Service to receive the business tax credit.

OSDC can help Ohio manufacturers navigate the evaluation process as well as help connect eligible projects to financing through either the SBA Green 504 Program or the Ohio 166 Regional Direct Loan Program. Once the tax credit is received, manufacturers can use those dollars to help pay the loan or invest in other growth opportunities.

Contact OSDC to learn more about how manufacturers can grow and invest in Ohio.