Manufacturing Tax Credit (48C) eere.energy.gov1

Commercialization & Deployment

Advanced Manufacturing Tax Credit (48C) Applicant Webinar

John Bartlett

Scott Stephens

September 17, 2009

Manufacturing Tax Credit (48C) eere.energy.gov2

Final Application Reminders

• The final application should be formatted in Compact Disc (CD) and 2 copies mailed to: – Department of Energy – Golden Field Office 48C Applications

1617 Cole Boulevard Golden CO 80401 – In addition, you may also email your final application to email

address: 48cappplications@hq.doe.gov

• After IRS acceptance on or before January 15, 2009, the taxpayer must execute and return the agreement to the Service by March 15, 2010 (ref. Section 6.04 and Section 8)

• Please check for updates on the Frequently Asked Questions before starting your Final Application (http://www.energy.gov/recovery/documents/Frequently_Asked_Questions_48C.pdf)

Manufacturing Tax Credit (48C) eere.energy.gov3

Manufacturing Tax Credit (48C) Applicant Decision Tree

Eligible Taxpayer

Eligible Project in U.S.

Commercially Viable

Eligible PropertyYes Yes Yes

Do not continue with

application

Continue with

application for 30%

tax credit based on allowable

cost of Eligible

Property

Yes

No

Do not continue with

application

No

Do not continue with

application

No

Do not continue with

application

No

Eligible: projects that re-equip, expand, or establish manufacturing facilities for:- Property to produce Solar, Wind or Geothermal energy- Fuel cells, microturbines or an energy storage system for electric/hybrid-electric vehicles- Electric grids/storage supporting transmission of intermittent RE- Property for CCS- Property for energy conservation- Property for refining/blending renewable fuels- Plug-in vehicles or components- Other GHG-reducing property

Ineligible:Projects that produce property for any refining/blending of fossil fuels

Eligible: only projects wherethere is a reasonableexpectation for commercialviability will be considered.Projects should:- Be ready for commercial deployment- Have well-developed and sizable end-markets

Eligible: Property which meets thefollowing requirements:- Is necessary for the production of end-use energy property described under Eligible Projects- Is tangible personal

property or other tangible property integral to the

manufacturing facility- Depreciation (or amortization in lieu of depreciation) is allowable

Ineligible: The building or structuralcomponents of the manufacturing facility

Manufacturing Tax Credit (48C) eere.energy.gov4

Specified Advanced Energy Property

Specified Advanced

Energy Property (SAEP)

Electricity Generation

Energy Conservation

Renewable Fuel Refining or Blending

Fuel Efficiency

GHG Emissions Reduction

Geothermal, Hydrokinetic, Solar,

Wind, etc.

Building, Fuel cell, Smart Grid,

Industrial, etc.

Biofuels Building, Fuel cell, Industrial, Vehicles,

etc.

CCS, Smart Grid, etc.

MWh / yr MWh / yr Gallons Gasoline Eq. / yr

Gallons Gasoline Eq. / yr

Mtons CO2 / yr

Manufacturing Tax Credit (48C) eere.energy.gov5

Quantitative Data and Qualitative Narrative

Lifetime

operty

Deployed

ePerformanc

Annual

onContributi

System

Fractional

Year

oductionAAMC Pr***

Pr

AAMC

MtonsAAMC

Emissions

CO

duced

*

Re

2

Application Data

Technology Information• Energy Area• Deployed Performance• Levelized Cost of SAEP

Factory Attributes• Annual Production• Value Added• Operational Lifetime• % SAEP

Jobs• Construction; Operation

Financial Information• Tax Credit Sought

Quantitative Data by

Criterion Tech Innovation and Cost

Reduction• Cost Advantage• AAMC / Tax Credit• LCOE

• $ / CO2

CO2 Reduction

• CO2 / Tax Credit

Job Creation• Jobs / Tax Credit

Schedule• Time to completion

newltraditiona

ltraditionanew

CO EmissionEmissions

Cost

Levelized

Cost

Levelized

Mton

2

$

Applicant Data Input Spreadsheet

Quantitative Data for Criterion

Qualitative Narrative

Application Score for Criterion + =