Eaton awarded $26m in tax credits for manufacturing investments
Intelligent power management company Eaton was awarded more than $26.6 million in investment tax credits from the US Internal Revenue Service as part of the Qualifying Advanced Energy Project Tax Credit (48C) funded by the Inflation Reduction Act.
The company was awarded the tax credits for its manufacturing investments totaling more than $200 million to support clean energy projects and workforce training in Nacogdoches and El Paso, Texas and Waukesha, Wisconsin.
“Eaton is accelerating and simplifying the energy transition for our customers across industries with steady investments in US manufacturing and workforce education programmes,” said Mike Yelton, president, Americas Region, Electrical Sector at Eaton.
“Our technologies at the heart of electrical systems are essential to modernize the grid and maximize the potential of clean energy across utility, residential, industrial, commercial building and data center applications. The investments we’re making in Texas, Wisconsin and beyond will help build a stronger, more sustainable future.”
Eaton received $16.3M tax credit for its manufacturing investments in Nacogdoches, Texas. In October 2023, Eaton broke ground on a $100 million expansion of its Nacogdoches, Texas manufacturing facility.
The company is adding 200,000-square-feet to its existing manufacturing facility, doubling production capacity of Eaton voltage regulators and creating more than 200 skilled manufacturing jobs. Eaton is also working with Angelina College to establish a new workforce training curriculum and Stephen F. Austin State University to offer apprenticeship programmes.
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“I am excited to see Eaton receive this substantial award to support their commitment to advancing America’s energy independence and economic prosperity,” said Congressman Pete Sessions.
“This $16.3 million tax credit will not only bolster Eaton’s efforts in modernising vital energy infrastructure but also bring over 200 new jobs to Nacogdoches and the East Texas region. I am proud to support Eaton’s projects in the Texas 17th Congressional District and will always stand strong for a secure energy future in America.”
Additionally, Eaton secured a $9 million tax credit to expand its manufacturing in El Paso, Texas. In El Paso, Eaton is investing $80 million to expand its manufacturing footprint to increase production of its circuit breakers, switchboards, panelboards and other assemblies.
The company is opening a new facility, creating more than 600 new skilled manufacturing jobs and increasing capacity at its existing manufacturing plant. Eaton is also working with Western Technical College to prepare students for careers in the clean energy manufacturing industry.
“El Paso is an ideal place for manufacturing investments and companies that are leaders in innovation,” said Congresswoman Veronica Escobar.
“Between an attractive market and a dedicated workforce, I’m thrilled that the Department of Energy and IRS are investing in our community. With funds made possible by the Inflation Reduction Act and the continued commitment of companies like Eaton, our country’s potential for clean energy only continues to grow.”
Eaton also gained a $1.3 million tax credit for investments in its Waukesha, Wisconsin, manufacturing capabilities.
At the company’s largest Wisconsin manufacturing facility in Waukesha, Eaton is investing $22 million in equipment to increase manufacturing capacity of three-phase transformers for utility, data center, large commercial and industrial applications.
Eaton is closely with Waukesha County Technical College (WCTC) on curriculum and has constructed a dedicated training center where students can gain direct experience producing grid modernization solutions.
Originally published by Sean Wolfe on Power Grid International.
