Capstone Green Energy Applauds the New Inflation Reduction Act That Has Been Signed into Law by President Biden
Capstone Green Energy Corporation (NASDAQ: CGRN) commends the recent expansion of the federal Investment Tax Credit (ITC) and Production Tax Credit (PTC) under the Inflation Reduction Act. The ITC for microturbine CHP projects will rise from 10% to 30% until the end of 2024. This legislation reinstitutes the tax credit for biogas projects and introduces a 10% bonus for qualifying projects. Capstone's strategy embraces new technologies like energy storage and hydrogen production, bolstering its competitive edge in the clean energy sector.
- ITC for microturbine CHP projects increased from 10% to 30%.
- Reinstatement of the tax credit for biogas energy projects.
- 10% bonus credit for projects meeting domestic content requirements.
- Legislation supports long-term development and certainty in clean energy investments.
- Capstone's strategy aligns with new technologies added by the legislation.
- None.
New Law Will Extended, Expand and Increase Federal Clean Energy Investment Tax Credit to New Technologies, Fuels, and Energy Users
This groundbreaking climate policy will support the transition to zero emissions CHP while encouraging domestic manufacturing and the revitalization of communities currently reliant on fossil energy plants and jobs. Starting in 2025, the structure of the energy tax credit changes to a technology-neutral credit for zero-emissions facilities, which can be elected as either an ITC or a PTC. Stretching the availability of the technology-neutral credits through 2035 or sooner if electric sector greenhouse gas emissions reduction targets are met provides certainty for longer-term development than past short-term extensions. New labor requirements for prevailing wage and employment of apprentices will be developed by the
Tax-exempt entities like non-profit hospitals and municipal entities will also be able to take advantage of these tax credits through the direct pay and transferability options but must meet domestic content requirements. New credits were also added for hydrogen production determined by kilograms of clean hydrogen produced per year and advanced energy manufacturing, which may be used, for example, to re-equip an industrial facility in a way that reduced greenhouse gas emissions by
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Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding expected benefits of the ITC and PTC and other statements regarding the Company's expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as "expect," "anticipate," "believe," "could," "should," "estimate," "intend," "may," "will," "plan," "goal" and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company's indebtedness; the Company's ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company's ability to adequately protect its intellectual property rights; and departures and other changes in management and other key employees. For a detailed discussion of factors that could affect the Company's future operating results, please see the Company's filings with the
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FAQ
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