Advanced Industrial Facilities Deployment Program

As part of the Inflation Reduction Act, the $5.8 billion Advanced Industrial Facilities Deployment Program provides competitive financial support to owners and operators of energy-intensive industrial facilities who engage in high-impact projects that significantly reduce GHG emissions. Examples of low-carbon process technologies that could gain AIFDP support include using hydrogen made from renewable energy in the steel sector or generating ethylene from ethane to cut CO2 emissions in the chemicals sector. Since deployment of low-carbon technologies at an industrial scale can be very costly for companies, this program aims to help cover research and engineering costs, encouraging companies to work together. The bill also expands manufacturing tax credit (48C) eligibility to include industrial emissions reductions, providing this tax credit for projects that achieve at least a 20% cut.