United States

United States

Obama calls for $5 billion in manufacturing tax credits

US: President Barack Obama has urged Congress to more than triple the size of a $2.3 billion renewable manufacturing tax credit.

Speaking at the University of Nevada in Las Vegas, Obama said the Advanced Manufacturing Tax Credit, also known as 48c, should be increased by $5billion.

He said the tax credit has had an "extraordinary impact", supporting 180 projects in over 40 states.

The incentive, which funds up to 30 percent of the capital cost of new or expanded factories completed by the end of 2014, has received 500 applications requesting over $8billion in tax credits.

As of March, 51 wind supply chain projects had secured about $340million from the incentive. Companies benefiting include Mitsubishi, Fuhrlander and Alstom.

The tax credit is providing about 30% of capital costs for Alstom’s planned turbine assembly plant in Amarillo, Texas.

Obama said investing another $5billion in the project would create nearly 40,000 jobs and $12 billion or more in private sector investment, which could in turn create another 90,000 jobs.

He said the expansion proposal has support from members of both parties, including Republican senators Dick Lugar of Indiana and Orrin Hatch of Utah.

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