G/SCM/Q2/USA/94  
 
22 April 2024 
(24-3320) Page: 1/6 
Committee on Subsidies and  
Countervailing Measures  Original: English  
 
SUBSIDIES  
REPLIES TO QUESTIONS POSED BY THE UNITED KINGDOM1 REGARDING  
THE NEW AND FULL NOTIFICATION OF THE UNITED STATES2 
The following communication, dated and received on 22 April 2024, is being circulated at the  request 
of the delegation of the United States . 
 
_______________  
 
 
The United States respectfully provides the following responses to the United Kingdom : 
 
Clean Vehicle Credit  
Question  1 
1. Could the United States please provide information on the total the number of 
recipients of the clean vehicle credit during the reporting period?  
 
Reply : 
 
We only have final figures on sales of clean vehicles purchased for personal use for tax year 2021. 
That year , approximately 190 thousand individual taxpayers earned a tax credit for the purchase of 
a qualifying vehicle purchased for individual use. Data for business use have not been finalized.  
 
The data is based on a stratified probability sample in which the population of tax returns is classified 
into subpopulations, cal led strata, and an independent sample is selected from each stratum.  
 
Alternative fuel refuelling property credit  
Question  2 
The notification states that the revenue loss was $450 million in fiscal year 2021 and 
$1,082 million in fiscal year 2022 'for both  the clean vehicle credit and the alternative fuel 
refuelling property credit'.  
2. Could the United States please clarify what the proportion of revenue loss for 
FY 2021 and FY  2022 was attributed to : 
 
(a) The alternative fuel refuelling property credit?  
(b) The clean vehicle credit?  
  
 
1 G/SCM/Q/USA/92 . 
2 G/SCM/N/401/USA . G/SCM/Q2/USA/94  
 
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  Reply : 
 
All tax figures cited in the U.S. notification are from tax expenditure estimates prepared annually 
and included in the Budget of the U.S. government. The tax expenditure estimates are also published 
on the Treasury Department 's website . Tax expenditure estimates are often produced before final 
tax data is available and the estimates account for firms having enough tax liability to use the credits 
each year.  
 
In tax year 2021, individual taxpayers earned approximately $1.1 billion dollars in tax credits for 
the purchase of qualifying vehicles purchased for individual use. Data for businesses, which would 
include the alternative refuelling property credit, have not been finalized.   
 
Based on historical data, the clean vehicle credit received the largest share of the combined figures. 
In tax year 2020, total tax credits earned for the  alternative fuel refuelling credit equalled 
$60 million. The clean vehicle credits earned by individuals and businesses equalled approximately 
$670 million. Data for individuals receiving certain clean vehicle credits for business use have been 
excluded f rom the data due to disclosure rules.  
 
Both the business and individual data are based on a stratified probability sample in which the 
population of tax returns is classified into subpopulations, called strata, and a sample is selected 
from each stratum.  
 
Department of Energy Programs to be Amended or Implemented under the Inflation 
Reduction Act  
Question  3 
3. Could the United States please provide information on the total number of recipients 
of support across the listed programs during FY 2022?  
 
Reply : 
 
The Inflation Reduction Act passed on August 16, 2022.  The period of the notification goes through 
September 30, 2022.  We notified these programs in the interest of transparency but we are unaware 
of any program funding that was awarded in the six weeks f ollowing passage of the legislation.  
 
Question  4 
4. Could the United States please provide additional information on the policy 
objective, form, eligibility criteria and duration of the subsidy for the following listed 
programs:  
 
(a) Domestic Manufacturing  Conversion Grants?  
 
Reply :  
 
The objective of these grants is to support a just transition for workers and communities in the 
transition to electrified transportation, with particular attention to communities supporting facilities 
with longer histories in automotive manufacturing. Preference will also be given to projects that 
commit to pay high wages for production workers and maintain collective bargaining agreements . 
Form and eligibility criteria are all detailed in the funding opportunity a nnouncement document, 
posted on the DOE Clean Energy Infrastructure Funding Opportunity Exchange website. As part of 
the Inflation Reduction Act, the resulting projects represent cost shared agreements that generally 
have a duration of 3 -5 years.  
Relevant Links: Domestic Manufacturing Conversion Grants | Department of Energy  
 
(b) Advanced Industrial Facilities Deployment Program?  
 
Reply :  
 
The Industrial Demonstrations Program will accelerate decarbonization projects in energy -intensive 
industries . The funds under this program must be obligated by September 30, 2026 . DOE announced  G/SCM/Q2/USA/94  
 
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  33 projects selected for negotiations on March 27, 2024 . Industrial Demonstrations Program | 
Department of Energy  
 
Advanced Manufacturing Investment Credit  
Question  5 
5. Could the United States please provide further information on the eligibility criteria 
for the scheme, including whether foreign manufacturers operating in the United States 
can apply for tax concessions under the scheme?  
 
Reply : 
 
On March 23, 2023, the  Treasury Department and the IRS published in the Federal Register 
(88 FR 17451 ) a notice of proposed ru lemaking (REG –120653–22), which contains proposed 
regulations to implement the general provisions relating to the section 48D credit (March 2023 
proposed regulations). The March 2023 proposed regulations included proposed definitions of 
various statutory t erms, including "eligible taxpayer, " "qualified property, " "advanced manufacturing 
facility, " and "semiconductor. " The March 2023 proposed regulations also proposed rules under 
section 48D regarding the beginning of construction requirement; proposed rules requiring pre -filing 
registration with the IRS in advance of filing an elective payment election; and proposed ru les 
implementing the "applicable transaction " credit recapture rules under section 50(a)(3) of the Code. 
In addition, the March 2023 proposed regulations requested comments on potential issues with 
respect to the elective payment election provisions under section 48D(d) that may require guidance.  
 
Taxpayers who make qualified investments in a facility of an eligible taxpayer that is located in the 
United States  may qualify for the section 48D credit.  An eligible taxpayer  is a taxpayer that  (1) is 
not a fore ign entity of concern and (2)  has not engaged in applicable transaction (a significant 
transaction that materially expands semiconductor manufacturing capacity in the People 's Republic 
of China or a foreign country of concern).   
 
Final rules have been publ ished ( 89 FR 17596 ) that describe rules for the elective payment election, 
includ ing special rules applicable to partnerships and S corporations, repayment of excessive 
payments, basis reduction and recapture, and the IRS pre -filing registration process that taxpayers 
wanting to make the elective payment election are required to follow . 
 
Question 6  
6. The notification states that the total amount provided over the reporting period was 
$0. Could the United States please clarify what the annual budget allocation will be for 
this scheme?  
Reply : 
 
These tax credits are not subject to an annual budget allocation. Qualifying taxpayers may who 
make qualifying investments may claim the tax credit.  
 
Renewable Energy Resources  
Question 7  
7. Could the United States please provide further information on the "competitive 
financial assistance opportunities" in which awards are provided under the scheme?  
 
Reply : 
 
Additional information on financial assistant opportunities is available online at EERE eXCHANGE: 
Funding Opportunity (energy.gov)  
 G/SCM/Q2/USA/94  
 
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  Question 8  
8. Could the United States please provide information on the number of awards 
provided for both FY 2021 and FY 202 2, across wind energy, solar energy, geothermal 
technologies and water power?  
 
Reply : 
 
Geothermal technologies  
 
• FY21:  
• Hydraulic Properties FOA: 7 awards  
• Wells of Opportunity FOA: 5 awards  
• Geothermal Lithium Extraction Prize (semi -finalists): 15 awards  
• FY22:  
• Geothermal Hybrids Lab Call: 3 awards  
• GEODE FOA: 1 award  
• Geothermal Drilling Tech Demonstration Campaigns FOA: 2 awards  
• FedGeo Partnerships Lab Call: 1 award  
• Community Geo Heating and Cooling FOA: 11 awards  
 
Wind Technologies  
 
• FY21:  
▪ Advanced Next -Generation, High -Efficiency, Lightweight Turbine Generator 
FOA: 1 award  
▪ Offshore Wind Energy Atmospheric Science and Project Development FOA: 
3 awards  
• FY22:  
▪ FLoating Offshore Wind ReadINess (FLOWIN) Prize: 9 awards  
▪ BIL Wind Turbine Materials Recycling Prize: 20 awards  
▪ Small Business Innovative Research (SBIR) Phase III: 3 awards  
▪ Offshore Wind Energy Environmental Research and Instrument Validation 
FOA: 5 awards  
 
The United States does not have a breakdown for water programs but there were no solar awards 
in FY21 or FY22  
 
Department of Energy Programs to be Amended or Implemented under the Infrastructure 
Investment and Jobs Act  
Question  9 
9. Could the United States please provide additional information on the policy 
objective, form, eligibility criteria and duration of the subsidy for the following listed 
programs:  
 
(a) Battery Manufacturing and Recycling Grants?  
 
Reply : 
 
The objective of these grants is to create new, retrofitted, and expand ed domestic facilities for 
battery -grade processed critical minerals, battery precursor materials, battery components, and cell 
and pack manufacturing, all of which are critical to supporting clean energy industries of the future, 
such as renewable energy and electric vehicles. Form and eligibility criteria are all detailed in the 
funding opportunity announcement document, posted on the DOE Clean Energy Infrastructure 
Funding Opportunity Exchange website. As part of the Bipartisan Infrastructure Law, the re sulting 
projects represent cost shared agreements that generally have a duration of 3 -5 years.  
 G/SCM/Q2/USA/94  
 
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  Relevant Links: Battery Materials Processing Grants | Department of Energy  
Battery Manufacturing and Recycling Grants | Department of Energy  
https://infrastructure -exchange.energy.gov/FileContent.aspx?FileID=fca77482 -7f81-453d-9c5d-
b366adf2b031  
 
(b) Clean Hydrogen Manufacturing Recycling Research, Development? 
Demonstration Program?  
 
Reply : 
 
The Clean Hydrogen Manufacturing Recycling Program is designed to provide federal financial 
assistance to advance new clean hydrogen production, processing, delivery, storage, and use 
equipment manufacturing technologies and techniques. The program was designed to provide funds 
for initiatives that could increase the efficiency and cost -effectiveness of the recovery of raw 
materials from clean hydrogen technol ogy components and systems, minimize environmental 
impacts from the recovery and disposal processes; address any barriers to disassembly and 
recycling; develop alternative materials, designs, manufacturing processes, and other aspects of 
clean hydrogen tec hnologies; develop alternative disassembly and resource recovery processes that 
enable efficient, cost -effective, and environmentally responsible disassembly of, and resource 
recovery from, clean hydrogen technologies; and develop strategies to increase co nsumer 
acceptance of, and participation in, the recycling of fuel cells.  
 
The selected projects were announced on March 13, 2024 : Biden -Harris Administration Announces 
$750 Million to Support America 's Growing Hydrogen Industry as Part of Investing in Americ a Agenda 
| Department of Energy  and, Funding Selections for Clean Hydrogen Electrolysis, Manufacturing, and 
Recycling Activities under the Bipartisan Infrastructure Law | Department of Energy  
 
(c) Wind Energy Technology Program?  
 
Reply : 
 
Provision 41007(b)(1) of the Infrastructure Investment and  Jobs Act (IIJA) appropriated funding for 
Wind Energy Technologies Office (WETO) activities as authorized in the Energy Act of 2020. This 
one-time appropriation supplemented and expanded upon critical program activities to drive wind 
energy scientific unde rstanding and technology innovations for cost reduction and performance 
improvement, and address market barriers, including siting challenges and impacts of wind energy 
on the environment and communities, to accelerate wind energy deployment. Provision 410 07(b)(2) 
of the IIJA likewise appropriated funding for WETO activities authorized in the Energy Act of 2020 
but through the implementation of a new program to enable and accelerate cost -effective wind 
energy industry efforts to create whole wind plant recy cling technology solutions and pathways.  
 
41007(b)(1) Funding Opportunity Announcement  
WETO Releases $28 Million Funding Opportunity to Address Key Deployment Challenges for Offshore, 
Land-Based, and Distributed Wind | Department of Energy  
 
41007(b)(2) Recycling Prize  
Department of Energy Launches Prize to Jumpstart Wind Turbine Materials Recycling Industry | 
Department of Energy  
 
(d) Advanced Solar Energy Manufacturing Initiative?  
 
Reply : 
 
On July 6, 2023 , the U.S. Department of Energy (DOE) Solar Energy Technologies Office (SETO) 
announced the Bipartisan Infrastructure Law Silicon Solar Manufacturing a nd Dual -use Photovoltaics 
Incubator funding opportunity, which will award $18 million allocated under the Infrastructure 
Investment and Jobs Act for projects to enable continued solar cost reductions while developing 
next-generation solar technologies and boosting American solar manufacturing.  
Funding Notice: Bipartisan Infrastructure Law Silicon Solar Manufacturing and Dual -use 
Photovoltaics Incubator | Department of Energy  G/SCM/Q2/USA/94  
 
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  (e) Carbon Capture Technology Program, Front -End Engineering and Design?  
 
Reply : 
 
On September 23, 2022,  DOE announced up to $189 million in funding for integrated Front -End 
Engineering Design (FEED) studies to support the development of community -informed integrated 
carbon capture, transport, and storage projects. This funding is part of OCED 's Carbon Captu re 
Demonstration Projects Program, which seeks to address the urgent need to advance carbon 
management technologies. The goal of the Carbon Capture Demonstration Projects Program is to 
accelerate the implementation of integrated carbon capture and storage technologies and catalyse 
significant follow -on investments from the private sector to mitigate carbon emissions sources in 
industries across America.  
Carbon Capture Demonstration Projects Program Front -End Engineering Design (FEED) Studies 
Selections for Award Negotiations | Department of Energy  
(f) Advanced Energy Manufacturing and Recycling Grant Program?  
 
Reply : 
 
The Advanced Energy Manufacturing and Recycling Grant Program is designed to provide grants to 
small- and medium -sized manufacturers to enable them to build new or retrofit existing 
manufacturing and industrial facilities in communi ties where coal mines or coal power plants have 
closed. These facilities will produce or recycle advanced energy products or contribute to emissions 
reductions within the manufacturing sector. Firms in an eligible census tract must meet the following 
criteria: the gross annual sales of which are less than $100,000,000; that has fewer than 
500 employees at the plant site of the manufacturing firm; and the annual energy bills of which total 
more than $100,000 but less than $2,500,000. The anticipated period of performance is 36 months 
from the date of award.   
 
Relevant Links: Advanced Energy Manufacturing and Recycling Grants | Department of Energy  
 
(g) Advanced Reactor Demonstration Program?  
 
Reply : 
 
The Advanced Reactor Demonstration Program (ARDP) demonstration projects will speed up the 
demonstration of advanced reactors through cost -shared partnerships with U. S. industry. These 
innovative nuclear technologies are ideally sized and designed to provide flexible electricity output 
and as process heat for a wide range of industrial heat applications. After receiving an additional 
$2.5 billion, funded by the Biparti san Infrastructure Law, the Advanced Reactor Demonstration 
Projects will support design, licensing, construction, and operation of two advanced reactor 
technologies, the TerraPower Natrium and the X -energy Xe -100 reactors, in the 2030 -timeframe. 
This fundi ng builds on the initial $160 million from DOE 's Office of Nuclear Energy, awarded in 2020.  
 
Relevant Links: Advanced Reactor Demonstration Projects | Department of Energy  
 
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