Celebrating $6B in Clean Manufacturing and Metals Investments to Increase U.S. Decarbonization Efforts

Trump should eliminate 48C IRS cap to increase steel, aluminum, industrial heat investment

January 10, 2025

Washington, DC- Today, the U.S. Department of the Treasury announcedthe details of 140 projects spanning aluminum production, building-material decarbonization, industrial heat, and critical mineral supply chains across more than 30 states that received a total of $6 billion in allocations through the Qualifying Advanced Energy Project Credit (48C). The companies behind these projects have committed to investing billions more to qualify.

The projects announced today aim to meet critical needs by ensuring that innovative production of essential components for the economy - both general manufacturing and clean energy manufacturing - can thrive securely within the United States. In order to receive the full 30 percent investment tax credit, projects receiving a 48C tax credit must meet prevailing wage and registered apprenticeship requirements.

The 48C program, a $10 billion federal investment under President Biden's Investing in America agenda and the Inflation Reduction Act supports clean energy manufacturing by accelerating critical material production and reducing industrial greenhouse gas emissions. This capped tax credit, which has spurred $44 billion in total investment across 250 projects, includes the $6 billion allocated today, following the U.S. Department of Energy's April 2024 announcement.

In response to the announcement, Harry Manin, Deputy Legislative Director for Industrial Policy & Trade for the Sierra Club, issued the following statement:

"We are celebrating this $6 billion investment in a national industrial decarbonization strategy that prioritizes rebuilding our domestic manufacturing sector. 48C is bringing manufacturing back to the United States, and companies want to invest $140 billion more through the tax credit in clean American manufacturing, critical materials production, and industrial efficiency. The Trump Administration and Congressional Republicans should eliminate the arbitrary 48C IRS cap that prevents more steel and aluminum makers from investing in the United States."

About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.

Industrial Transformation