Shaw Receives $10.8 Million Recovery Act Advanced Energy Manufacturing Tax Credit
The Shaw Group today announced it has been awarded a $10.8 million federal tax credit from the U.S. Department of Energy and U.S. Internal Revenue Service for its Shaw Modular Solutions, LLC, nuclear module assembly facility in Lake Charles, La., USA.
The goal of the tax credit, also referred to as Section 48C of the Internal Revenue Code, is to help build a robust, high-technology domestic manufacturing capacity to supply clean energy projects with U.S.-made parts and equipment. The credit supports several critical components of the Recovery Act, including job creation and investment in the domestic renewable energy industry, and will assist Shaw in continuing its role in moving the commercial nuclear industry forward.
Shaw Modular Solutions is a state-of-the-art, 410,000-square-foot facility that will assemble structural, piping, equipment and other modules for new nuclear power plants including Westinghouse AP1000(TM), the world's safest and most economical commercial nuclear power technology. Shaw Modular Solutions will incorporate modern modular construction techniques that result in a shortened schedule and reduced capital costs for new nuclear power plants.
Up to $2.3 billion in credits have been allocated by the U.S. government for advanced energy projects, which will support total capital investments of almost $7.7 billion in new renewable and advanced energy manufacturing projects. The tax credit provides a 30 percent credit for investments in new, expanded, or re-equipped advanced energy manufacturing projects.
Both the Department of Energy and the Internal Revenue Service evaluated and ranked applicants based on a variety of factors, including expected job creation, reduction of greenhouse gas emissions and air pollutants, technological innovation and regional economic development.
"As President Obama stated during his announcement today, these projects must help close the clean energy gap that has grown between the U.S. and other countries, they must reduce our emissions and they must increase our energy security," said J.M. Bernhard Jr., chairman, president and chief executive officer of Shaw. "Shaw is at the forefront of this commitment through our leadership in the revival of the commercial nuclear energy industry."
In addition to the company's long-term investment in Shaw Modular Solutions, Shaw currently is providing engineering, procurement and construction services for six new nuclear units in the U.S., the first contracts awarded in nearly 30 years for new nuclear builds.
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