DOE to Launch an Energy Innovation Hub for Critical Materials Research

The Energy Department announced on May 31 its plans to invest up to $120 million over five years in a new Energy Innovation Hub that will identify problems and develop solutions across the lifecycle of critical materials. Rare earth elements and other critical materials have unique chemical and physical characteristics—including magnetic, catalytic, and luminescent properties—that are important for a growing number of energy technologies. These critical materials are also at risk for supply disruptions. The new hub, funded by up to $20 million in Fiscal Year 2012, will carry out research aimed both at having a reliable U.S. supply of rare earths and other critical materials, as well as finding efficiencies and alternatives that reduce the amount of critical materials that are needed. The work will aim to advance U.S. leadership in energy-related manufacturing, including the production of electric vehicles, wind turbines, efficient lights, and other products.

Universities, national laboratories, nonprofit organizations, and private firms are eligible to compete and are encouraged to form partnerships when submitting their proposals. The award selection is expected this fall. This will be the fifth Energy Innovation Hub established by the Energy Department since 2010.

$26 Million Competition for Job Innovation Accelerators

The Obama Administration announced on May 29 a $26 million multi-agency Advanced Manufacturing Jobs and Innovation Accelerator Challenge to foster innovation-fueled job creation through public-private partnerships. The challenge will support projects that aim to help grow a region's industry clusters by strengthening connections to regional economic development opportunities and advanced manufacturing assets; enhance a region's capacity to create high-quality sustainable jobs; develop a skilled and diverse advanced manufacturing workforce; increase exports; encourage the development of small businesses; and accelerate technological innovation.

This is the third round of the Jobs Accelerator competition, which is being funded by the Energy Department; the U.S. Department of Commerce's Economic Development Administration and National Institute of Standards and Technology; the U.S. Department of Labor's Employment and Training Administration; the Small Business Administration; and the National Science Foundation. In this round, approximately 12 projects are expected to be chosen through a competitive inter-agency grant process. These coordinated investments will help catalyze and leverage private capital, build an entrepreneurial ecosystem, and promote cluster-based development in regions across the United States.

First Commercial Product Meets Rooftop Air Conditioner Challenge

The Energy Department announced on May 24 that Daikin McQuay's Rebel rooftop unit system is the first to meet DOE's Rooftop Unit (RTU) Challenge. Five manufacturers, Daikin McQuay, Carrier, Lennox, 7AC Technologies, and Rheem, are participating in this challenge to commercialize highly efficient commercial air conditioners that satisfy a DOE-issued specification for energy savings and performance. When built to meet the specification, these units are expected to reduce energy use by as much as 50%, relative to units built to current standards. Nationwide, if all 10- to 20-ton RTUs met the specification, businesses would save more than $1 billion each year in energy costs. The five companies have until April 1, 2013, to submit a product for independent evaluation according to the specification.

Manufacturers nationwide have a strong motivation to produce highly energy-efficient air conditioning units for commercial buildings. Members in DOE's Commercial Buildings Energy Alliances (CBEA), such as Target, Walmart, and other participating commercial building owners have expressed an interest in equipment that meets the new energy efficiency specification at an affordable price. The Energy Department is evaluating potential demonstration sites for high-performing products that meet the RTU Challenge and is also developing analytical tools that enable businesses to more accurately estimate the energy and cost savings of using high-performance RTUs in their facilities. The specification for the RTU Challenge, aimed at spurring the market introduction of cost-effective, high-performance commercial RTU air conditioners, was developed by DOE technical experts and informed by industry partners.

Mississippi: Bees and Bee Products

The Mississippi Attorney General has issued an opinion that the sales of bees and bee products by bee producers, such as honey in its original state, are exempt from sales tax under Miss. Code Ann. § 27-65-103(b) as farm, grove, or garden products sold in its original and unprocessed state. (Attorney General Opinion, 2012-00185, 04/16/2012.)

Mississippi: Abatement of Property Tax

The Mississippi Attorney General has issued an opinion that a local county board of supervisors had no authority to abate taxes on real property while the property was under pending forfeiture proceedings that were never finalized. The opinion stated that even if certain actions taken against the individual regarding his real property are determined to be unauthorized, the board still has no authority to waive the unpaid taxes. (Attorney General Opinion, 2012-00163, 04/20/2012.)

Florida: Equipment Used in the Distribution of Renewable Fuels

Beginning July 1, 2012, a refund of Florida sales and use tax paid on purchases of equipment, machinery, and other materials for renewable energy technologies is available for: (1) materials used in the distribution of biodiesel, ethanol, and other renewable fuels, including fueling infrastructure, transportation, and storage for these fuels; and (2) gasoline fueling station pump retrofits for biodiesel, ethanol, and other renewable fuels distribution. Taxpayers who purchase eligible equipment, machinery, and other materials for renewable energy technologies must apply to the Florida Department of Agriculture and Consumer Services (DACS) for certification of the authorized sales tax refund amount. To receive a refund of sales and use tax paid on eligible items, taxpayers certified by the DACS must submit Form DR-26S (Application for Refund - Sales and Use Tax) to the Department of Revenue within six months of the date of the written certification, and must include a copy of the certification. The amount of the refund is limited to the tax refund amount approved in the written certification. These provisions are scheduled to expire July 1, 2016. (Florida Tax Information Publication 10(A) 01-09, 06/01/2012.)

Wisconsin Issues Guidance about Dairy Manufacturing Investment Credit

The Wisconsin Department of Revenue has issued a fact sheet providing a general overview of the Wisconsin dairy manufacturing facility investment credit. For taxable years beginning after December 31, 2006, and before January 1, 2015, eligible businesses engaged in processing milk into dairy products or processing dairy products for sale commercially can claim this credit. Dairy cooperatives may claim the credit in taxable years beginning after December 31, 2008, and before January 1, 2017. Wisconsin Dairy Manufacturing Facility Investment Credit - Fact Sheet, Wis. Dept. Rev., 06/04/2012.

Enacted Legislation Changes Definitions for Enterprise Zone Credits

The statutory definition of “multifamily residential housing” for purposes of the enterprise zone tax credits has been amended by increasing the maximum number of housing units to 200, from 175, and conversely, the percentage of commercial or retail facilities needed to meet the definition of “transit-oriented development” has been decreased from 30 percent to 15 percent.  The legislation (H.B. 91) was enacted May 11. It takes effect Aug. 1.

Tax Credit Reinstated on Purchase, Lease of New Plug-in Hybrid Vehicles

South Carolina has reinstated the income tax credit for the purchase or lease of new plug-in hybrid vehicles for tax years 2012 through 2016.

Under legislation (H.R. 3059) enacted May 14, the credit is equal to $667, plus $111 if the vehicle has at least five kilowatt hours of battery capacity. The taxpayer may receive an additional $111 for each kilowatt hour of battery capacity that exceeds five kilowatt hours. Previously, the credit was equal to $2,000.

A “plug-in hybrid vehicle” is a vehicle that meets the following requirements: it shares the same benefits as an internal combustion and electric engine with an all-electric range of no less than nine miles; it has four or more wheels; it draws propulsion using a traction battery; it has at least four kilowatt hours of battery capacity; and it uses an external source of energy to recharge the battery.

To qualify for the credit, the vehicle must be manufactured primarily for use on public streets and highways. Vehicles classified as low-speed or medium-speed vehicles do not qualify.

To claim the credit, taxpayers must provide certification from the vehicle's manufacturer regarding its qualification as a plug-in hybrid vehicle and its battery capacity.

The maximum amount of credit allowed per taxpayer is $2,000. The total aggregate amount of credits allowed by the state for all taxpayers may not exceed $200,000 per calendar year and the credits must be distributed on a first-come, first-serve basis.

The legislation took effect May 14, but applies to in-state purchases and leases made on or after July 1.