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Michigan Manufacturers Win Federal Clean Energy Tax Credits - Shepherd Assists Merrill Technologies Group

Michigan Manufacturers Win Federal Clean Energy Tax Credits - Shepherd Assists Merrill Technologies Group
Tim Kumbier - Thu Jan 28, 2010 @ 04:59AM
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On January 8 President Obama announced the award of $2.3 billion in Recovery Act Advanced Energy Manufacturing Tax Credits for clean energy manufacturing projects across the country. Overall, 183 manufacturing projects in 43 states received awards.

The tax credits, worth up to 30% of each planned project, correspond to total company investments of nearly $7.7 billion in high tech, clean energy manufacturing. In total, the projects are expected to create more than 17,000 jobs.

Based on the program's success, The White House has proposed expanding the tax credit program by $5 billion. Senior administration officials expect to move the proposal through Congress quickly.

Thirteen Michigan manufacturers received tax credits totaling more than $240 million, representing over 10% of the national total, with individual awards ranging from $300,000 to $142 million. Among these projects, tax credits for solar and wind accounted for 88% and 12%, respectively. Awardees included:

Company, Tax Credit ($ mil), Clean Energy Manufacturing Area
Dow Chemical (two projects), $20.0, Solar-PV
Dow Corning -- Solar Silane, $27.3, Solar-PV
Energetx Composites, $2.0, Wind Turbines
Flame Metals Processing, $1.4, Wind Turbines
Great Lakes Industry, $1.3, Wind Turbines
Guardian Industries (two projects), $3.6, Solar-Concentrated
Hemlock Semiconductor, $141.9, Solar Components/Materials
ilumisys, $1.3, Buildings
Kaydon, $1.8, Wind Turbines
Merrill Technologies Group, $22.0, Wind Turbines
Rogers Foam Automotive, $0.3, Battery
Stirling Energy Systems, $9.8, Solar-Concentrating
United Solar Ovonic, $13.3, Solar-PV

Shepherd Advisors provided assistance to Merrill Technologies Group, based in Saginaw, MI, in securing the tax credit. In addition, Shepherd worked with several other manufacturers to assess feasibility of applying for the credit.

Selection Process
The winning projects were selected through a rigorous merit review process. The program was oversubscribed by a ratio of more than 3 to 1; over 500 applications were received with tax credit requests totaling over $8 billion.

Qualifying manufacturing facilities will produce:

  • Solar, wind, geothermal or other renewable energy equipment
  • Electric grids and storage for renewables
  • Fuel cells and microturbines
  • Energy storage systems for electric or hybrid vehicles
  • Carbon dioxide capture and sequestration equipment
  • Equipment for refining or blending renewable fuels
  • Equipment for energy conservation, including lighting and smart grid technologies
  • Plug-in electric vehicles or their components
  • Advanced energy property designed to reduce greenhouse gas emissions

The statutorily specified review criteria included:

  • Greatest domestic job creation (direct and indirect)
  • Greatest net impact in avoiding or reducing air pollutants or emissions of greenhouse gases; lowest levelized cost of energy
  • Greatest potential for technological innovation and commercial deployment
  • Shortest project time from certification to completion

Projects selected for the tax credit generally must be placed in service by 2014.

For the award announcement, including access to the full list of selections, please visit:

A fact sheet related to the announcement can be found at:

For additional information regarding the clean energy manufacturing tax credits, please contact Tim Kumbier at 734-975-0333 or tim@shepherdadvisors.com.

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