On August 13, 2009, the U.S. Department of Energy ("DOE") and the U.S. Department of the Treasury ("Treasury") announced a new program through which $2.3 billion in advanced energy project tax credits, authorized by the American Recovery and Reinvestment Act (the "ARRA"), will be awarded to investors in qualifying advanced energy projects. Specifically, the tax credit supports investment in the establishment, expansion or re-equipping of manufacturing facilities producing specific advanced energy property or components thereof. As part of the announcement, Treasury issued Notice 2009-72 (the "Notice"), providing guidance on the process and time lines for applying for the Advanced Energy Manufacturing Tax Credit ("MTC").

The credit is expected to support approximately $7.7 billion in investments in manufacturing facilities initiating advanced energy projects. Unlike several other credits under the ARRA that are provided to all eligible applicants, the MTC will be awarded through a competitive process in which only selected applicants will receive the credit.

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