G/SCM/Q2/USA/84  
 
25 March 2022  
(22-2538) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
REPLIES TO QUESTIONS1 POSED BY THE UNITED KINGDOM  REGARDING  
THE NEW AND FULL NOTIFICATION OF THE UNITED STATES2 
The following communication, dated and received on 24 March 2022 , is being circulated at the 
request of the delegation of the United States . 
 
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The United States respectfully provides the following responses to the United Kingdom:  
 
Agriculture Income Support and Marketing Assistance for Covered Commodit ies 
 
Question 1  
 
Which schemes notified have a continuous duration and which have a fixed duration?  
 
Reply : 
 
All programs under the Agriculture Improvement Act of 2018 (2018 Farm Act) are authorized or 
reauthorized through 2023. The Wildfires and Hurricanes Indemnity Program (WHIP) and WHIP Plus, 
Market Facilitation Program, and Coronavirus Food Assistance Programs, based upon the relevant 
authorizing legislation and funding authorities also have a limited duration. Federal Crop Insurance 
Program i s not limited in duration due to authorities of the Agricultural Adjustment Act of 1938 and 
the Federal Crop Insurance Act of 1980.  
 
Energy Conservation – Advanced Manufacturing  
 
Question 2  
 
Are financial contributions provided through grants or loans?  
 
Question 3  
 
Are eligible enterprises required to adhere to specific targets in order to qualify for the 
assistance and if so, how are these targets monitored?  
 
Reply to questions 2 and 3 : 
 
DOE's Advanced Manufacturing Office (AMO) supports a range of research, development, 
demonstration, and technical assistance activities through financial assistance, typically grants with 
a cost share component. AMO does not provide loan -based financial assistance. Grants are awarded 
pursuant to Funding Opportunit y Announcements (FOA).   
 
Within the explanatory documents of a particular FOA there are specific requirements for eligible 
enterprises to qualify as well as means of evaluating enterprises ' projects once awarded. See, for 
 
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  example, FY21 ADVANCED MANUFACTURI NG OFFICE MULTI -TOPIC FOA ( https:/eere -
exchange.energy.gov/Default.aspx#FoaIde231b0d9 -2c92-4010-a822-77abecf0dc82)   
 
Advanced Technology Vehicles Manufacturing Loan Program (ATVM)  
 
Question 4  
 
What types of vehicles are covered this scheme?  
 
Question 5  
 
What are the eligibility requirements for manufacturers to qualify for the scheme?  
 
Reply to questions 4 and 5 : 
 
In order to be eligible, a project must manufacture eligible vehicles or components that are used in 
eligible vehicles. Advanced technology vehicles are defined as ligh t-duty vehicles that meet or 
exceed a 25 % improvement in fuel efficiency beyond a 2005 model year base -line of comparable 
vehicles; and/or ultra -efficient vehicles which achieve a fuel efficiency of 75 miles per gallon or 
equivalent using alternative fuels . 
 
For additional information on eligibility and coverage:  
 
• Loan Programs Office - Advanced Technology Vehicles Manufacturing Website : 
https://www.energy.gov/lpo/products -services/advanced -technology -vehicles -
manufacturing -loan-program   
• See also the interim final rule : https://www.ecfr.gov/current/title -10/chapter -
II/subchapter -H/part-611#611.101   
Additionally, the Infrastructure Investment and Jobs Act (IIJA ) 
(https://www.congress.gov/bill/117th -congress/house -bill/3684/text ) extended the DOE Loan 
Program Office's authority to cover medium - and heavy -duty vehicles, as well as maritime vessels, 
aircraft, trains, and hyperloops and related components.  However, exercise of this authority requires 
additional appropriations, which are still pending in Cong ress. Note that for medium - and heavy -duty 
vehicle s to be eligible , vehicles must exceed 125 % of the greenhouse gas emissions and fuel 
efficiency standards established by the final rule of the Environmental Protection Agency entitled 
'Greenhouse Gas Emissions and Fuel Efficiency Standards for  Medium - and Heavy - Duty Engines and 
Vehicles --Phase 2' (81 Fed. Reg. 73478 (October 25, 2016)).  
 
Advanced Energy Property Credit  
 
Question 6  
 
Which sectors were eligible for this subsidy?  
 
Reply : 
 
The American Recovery and Reinvestment Act of 2009 included an allocated tax credit for 
investments in manufacturing facilities for clean energy technologies. The Section 48C Advanced 
Manufacturing Tax Credit allocated up to $2.3 billion for 30 % investment tax  credits. Eligible 
property included solar, wind, geothermal, fuel cells, microturbines, energy storage systems, carbon 
sequestration property, certain electric and hybrid vehicle components, renewable fuel blending 
property, electric grid property, and mo re. The details are listed in Sec. 48(C) of the IRC. Phase I 
allocations of the credit can be found at 
https://obamawhitehouse.archives.gov/sites/default/files/100108 -48c-selection -final-
with_projects.xls . A total of $150 million of credits were not used b y previous awardees. These 
unused credits were awarded in Phase II and can be found at 
https://www.energy.gov/sites/default/files/2013/12/f5/48C Phase II Selections Project 
Descriptions.pdf .  
 G/SCM/Q2/USA/84  
 
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  Energy Investment Credit  
 
Question 7  
 
What was the percent age r eduction in federal income taxes that businesses could 
receive under this scheme?  
 
Reply : 
 
Current law provides an investment tax credit for certain energy property, including solar and 
geothermal electric property, qualified fuel cell power plants, statio nary microturbine power plants, 
geothermal heat pumps, small wind property, waste energy recovery property, and combined heat 
and power property. The investment credit is calculated as a percent age of the basis (e.g. cost of 
the investment in property) of energy property placed in service during the taxable year. Generally, 
the investment credit is 30 % for property that begins construction before January 1, 2020, 26 % for 
property that begins construction after December 31, 2019 and before January 1, 2023, and 22 % 
for property that begins construction after December 31, 2022 and before January 1, 2024, and the 
energy property must be placed in service before January 1,  2026. For combined heat and power, 
geothermal electric, geothermal heat pumps, and microturbines, the credit is 10 %. The energy 
investment credit is part of the general business credits. Generally, the general business credit may 
not exceed net income tax  less the greater of the taxpayer's tentative minimum tax liability or 25 % 
of net regular tax liability above $25,000. Unused credits may be carried back one year or forward 
20 years after the year of the credit.  
 
 
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