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Three Chattanooga area manufacturing projects are to receive $341 million in clean energy tax credits from the federal government's stimulus spending package.
Volkswagen's auto assembly plant, expected to open in early 2011, was awarded a $150 million credit -- the largest of the some 180 announced Friday.
Alstom Power's project to make steam and gas turbines in Chattanooga will receive a $63 million tax credit.
Wacker Chemical Corp.'s planned $1 billion polysilicon plant in Bradley County garnered a $128 million tax break, the third largest.
Jill Bratina, Volkswagen Group of America's vice president of group corporate communications, said it appreciates the Obama administration's investment in advanced technologies designed to reduce greenhouse gas emissions.
"Our clean diesel TDI vehicles are one of the viable solutions toward that goal," she said. "This LEED-aggressive manufacturing facility, and the clean diesel vehicles built there, are part of our vision of a sustainable future."
VW's $1 billion plant is expected to employ 2,000.
Friday, the administration announced $2.3 billion in clean energy manufacturing tax credits as part of the American Recovery and Reinvestment Act.
CLEAN ENERGY TAX CREDITSTennessee* Volkswagen - $150 million* Wacker - $128 million* Alstom - $63 million* Monogram Refrigeration - $7.2 million* Sharp Electronics - $1.6 millionGeorgia* Suniva Inc. - $5.7 million* Southwire - $2.2 millionAlabama* General Electric Consumer & Industrial - $6.4 million
The aim was to foster investment and job creation related to clean energy technologies. The program provides for a 30 percent tax credit for investments in 43 states.
Gary Farlow, the Cleveland-Bradley Chamber of Commerce's chief executive, said the Wacker tax credits could accelerate the project a little.
"If they were awarded the tax credit, there was a requirement that they'd have to get building or grading permits by the end of this year," he said. "We're working toward that."
Mr. Farlow said Wacker's plant, designed to manufacture materials for the solar energy industry and bring 500 jobs, is on schedule.
Alstom will add about 360 people to its 600-member work force in the city as a result of its expansion. The company is injecting $280 million into its Riverfront Parkway facility in new equipment and refitting existing buildings.
J.Ed. Marston, the Chattanooga Area Chamber of Commerce's vice president of marketing, said the city has been working for years to partner with companies such as Alstom and Volkswagen.
"We're glad to hear the news of support to Alstom and VW," he said, adding that the energy and sustainability sectors are going to be big assets for the companies moving forward.