The credits, which are funded by the $787 billion economic stimulus package enacted last February, are designed to discharge up to 30 percent of the cost of new investments in manufacturing facilities to produce clean energy products.

The tax credit announcement dovetails with attempts by congressional Democrats to shift attention to the economy and focus on a multibillion dollar job creation package. Environmentalists joined Democrats on Capitol Hill in praising the announcements as much-needed assistance for the struggling manufacturing sectors.

Companies filed more than 500 applications for at least $8 billion in the tax credits. The recipients were selected after reviews by the Energy Department and the IRS. President Obama said the credits – which can be claimed for projects completed after Feb. 16, 2009 and commissioned before Feb. 15, 2013 – will leverage as much as $5.4 billion in private investments and lead to the creation of more than 17,000 jobs.

Nine solar and battery projects qualified in California, with the largest credit of $91.35 million going to Santa Clara-based MiaSolé for plans to manufacture solar cells using thin-film production technology. The company can also claim up to $10.45 million for a similar project. Sunnyvale’s CaliSolar qualified for a credit of up to $51.6 million to build a new manufacturing facility that aims to transform silicon materials into finished solar cells.

In my opinion, building a robust clean energy sector is how we will create the jobs of the future – jobs that pay well and can’t be outsourced. This initiative will give a much-needed boost to our manufacturing sector by building new plants or upgrading existing ones.

View a previously written post by Mouli Cohen about green technology in the news