Three Key Facts:
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- Voith invested $20 million to upgrade its York facility for renewable energy equipment manufacturing – leveraging the 30% 48C tax credit that was renewed and expanded in Joe Biden’s clean energy plan.
- The investment will boost U.S. production of hydropower turbines, create jobs, and strengthen Pennsylvania’s role as a clean energy hub.
- Pennsylvania has seen $1.08 billion in clean energy investments since the passage of Biden’s clean energy initiative.
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Voith Hydro North America, a leader in renewable energy technology, is transforming its manufacturing plant in York with a $20 million investment to modernize operations and bolster production of hydropower turbines.
The investment – made possible by Joe Biden’s clean energy plan – will significantly boost the U.S. supply chain for renewable energy equipment and help transition the former mining community into a clean energy hub.
“We can and should make the products that power America right here in America, in places like York, Pennsylvania,” said Stanley Kocon, president and CEO of Voith Hydro North America. “The latest investments in our state-of-the-art manufacturing facility will be instrumental in building the next generation of hydropower turbines and hydro pumped storage machines needed to meet our Nation’s ambitious climate and job-creation goals.”
Overcoming Challenges
Previously, manufacturers like Voith faced hurdles such as rising operational costs and limited access to incentives for renewable energy production. The 48C tax credit provides financial relief, enabling manufacturers to modernize their facilities and scale production. The 48C program was established in 2009, but had expired and was no longer available. The Inflation Reduction Act – part of Joe Biden’s clean energy plan – renewed and expanded the program in 2022.
Carl Atkinson, vice president of sales for Voith Hydro emphasized the impact of the IRA’s tax credit, “It is basically a 30% tax credit for businesses that invest in their existing manufacturing operations for renewable energy equipment.
The funding will also support Voith’s apprenticeship programs in welding and machining, making Voith employees eligible for higher levels of work and pay because of the continuous learning opportunities. “It’s apprenticeship and training, so it qualifies for new and existing employees to secure career growth opportunities in their trades,” Atkinson continued.
Investment Impact
The $20 million infusion in York County will create jobs, enhance supply chain resilience, and strengthens Pennsylvania as an emerging hub for clean energy innovation. These efforts align with the Biden-Harris Administration’s broader renewable energy goals, which have already funneled over $18 billion into Pennsylvania for clean energy projects.
Voith’s investment reflects the success of the IRA’s tax credit incentives, designed to offset manufacturing costs while spurring economic growth. Pennsylvania has already seen the creation of over 2,800 clean energy jobs since the IRA’s passage. Voith’s expansion aligns with these trends, enhancing job opportunities and environmental benefits for local communities.
