The government would provide up to a 30% tax credit for companies to expand or build new facilities that make products to reduce carbon emissions.
The Biden administration is endeavouring to assert itself as a cohesive force to tackle climate change, while ensuring the economy still offers good-paying jobs. A new bill aims to put that thinking into play directly. This week, Democrats introduced the American Jobs in Energy Manufacturing Act, which would provide up to a 30% tax credit for companies building products and technology that reduce carbon emissions.
More specifically, these companies would need to expand or build new facilities in the US and employ American workers to build various "parts and technologies needed to reduce carbon emissions," according to the announcement.
For example, firms making electric car batteries or EVs themselves would eligible. As would companies in the US making semiconductor chips, components to strengthen the renewable energy sector and carbon-capture technology. Half of the $8 billion proposed in the legislation would be set aside for communities where coal mines and plants closed in an effort to bring along areas reliant on fossil fuel production.
"We have fallen behind countries like China, and the COVID-19 crisis has exposed gaps in our domestic manufacturing," Senator Debbie Stabenow said in a statement. "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."