“As the world moves toward renewable energy and a greener economy, it is necessary to accelerate a new era of American manufacturing and innovation,” said Levin. “With the US government as a full, active and effective partner, the private sector can expand our green manufacturing capacity, ensuring that these jobs and products will be created in the US, competing globally and protecting our environment. The governments of other countries are racing ahead to dominate in this area.

“This is why the draft I am releasing today provides vital tax incentives to modernize US manufacturing facilities and encourage demand of renewable energy and energy efficient products," the Michigan Democrat added. "We must not let this opportunity pass us by. I will continue to work with my colleagues in the House and Senate, as well the Administration, to enact legislation."

The draft legislation includes USD6.5bn of investment tax credits for taxpayers that re-equip, expand or establish domestic manufacturing facilities that produce advanced energy equipment. According to Levin, these tax credits will encourage more than USD22bn of investment in domestic manufacturing facilities and will build upon the USD2.3bn of investment tax credits that were provided in the Recovery Act

The draft legislation also includes a continuation of the 'Section 1603' payments in lieu of tax credits for clean energy producers, provides for a long-term extension of the placed-in-service date for offshore wind and geothermal facilities, and provides state and local governments with financing tools to encourage energy efficiency and renewable energy on residential property.

Additionally, the proposals provide tax incentives for renewable fuel production and technologies, and for large natural gas and electric/hybrid vehicles. Furthermore, the draft would continue tax incentives for domestically produced biofuels such as ethanol and biodiesel.