Sun Devils Welcome Suntech Update: Company Seeking Manufacturing Tax Credit
We reached out to Suntech Power’s spokeswoman after the announcement that the company plans to build a plant that can produce 30 MW of capacity by late 2010 and learned that the company is, indeed, seeking stimulus funds.
Spokeswoman Sarahjane Sacchetti told us, via email, that the company would seek a 30 percent manufacturing tax credit available under the American Recovery and Reinvestment Act. The company, as expected, is also working with the state of Arizona and the Greater Phoenix Economic Council on grants, property tax abatements, permit fee waivers and local tax reductions, Sacchetti writes.
The company will be funding the construction by itself but has not put a price on the project yet, since officials are still considering sites.
As for the timing of the announcement, Sacchetti added,
We made the announcement in Beijing this morning during the U.S. China Green Tech Summit. Our head of the United States, Steven Chan was speaking this AM regarding the importance of collaboration between U.S. and China business and policy leaders in terms of advancing renewable energy and he shared the news of the Arizona area being selected for our first U.S. plant.
Interestingly enough, Keith Johnson at WSJ’s Environmental Capital has a piece on HSBC’s report that low prices for solar power modules will stimulate demand and economies of scale in the coming year. It will be good for Suntech’s Asian manufacturing facilities because labor costs are much lower, HSBC notes.
The reports also justifies Suntech’s decision to build in the U.S., since material costs are decreasing and transportation costs will account for a bigger share of the company’s expenses.
