Tax credits incentivize companies to use American steel, iron, and manufactured goods when building new energy projects
Washington, D.C. - Today, U.S. Senator Bob Casey (D-PA) applauded the U.S. Department of Treasury guidance of tax credits for companies to build American-made clean energy facilities. The guidance comes from a Casey-led provision of the Inflation Reduction Act that gives companies a “domestic content” bonus credit for using American steel, iron, and manufactured goods in new clean energy projects. Casey fought to make sure the rules reward firms that use American goods throughout their process and not just during the final stages of manufacturing or assembly. By incentivizing companies to use American-made goods, these credits give American workers a leg up on Chinese and other foreign competitors who do not play by the rules.
“When we passed the Inflation Reduction Act, I fought to make sure we finally help American workers get ahead,” said Senator Casey. “With the release of this guidance, companies will see that it pays to use American steel, iron, and other goods in their manufacturing processes. When we prioritize American workers and American products, we not only bolster our economy and supply chains, we outcompete countries like China.”
Senator Casey has long fought to protect American workers in Washington. The Inflation Reduction Act also includes his provision to incentivize companies to build, expand, or retrofit clean manufacturing facilities, recycling, industrial decarbonization, and more in “energy communities,” areas whose economies and jobs are or were dependent on the coal, oil or natural gas energy sectors. These credits will bring good-paying energy jobs to communities that have powered the U.S. for generations. According to one study, this provision is projected to create 92,000 new jobs over the next ten years, including 36,800 in former coal communities.
Casey has also worked to protect good-paying, union jobs in energy and steel communities like those in Western Pennsylvania. Throughout the Trump and Biden Administrations, Casey has led a bipartisan push to protect Cleveland-Cliffs, America’s last electrical steel manufacturer, from trade cheating on the part of foreign competitors. He continues to push the Biden Administration to prevent countries like China and Russia from circumventing American trade laws and to ensure we are not reliant on foreign adversaries to supply our electrical grid.
As the lead sponsor of the National Critical Capabilities Defense Act, Senator Casey has been pushing for action so the U.S. can better understand the risks of allowing foreign competitors to gain access to critical capabilities and technology, as well as to design and manufacture goods that are vital to U.S economic and national security interests. Casey’s legislation, first introduced in 2021, has bipartisan and bicameral support. Biden Administration officials, including Commerce Secretary Gina Raimondo, United States Trade Representative Katherine Tai and National Security Council Advisor Jake Sullivan have also expressed support for increased scrutiny of outbound investments.