ZBB Energy to Receive $14,685,000 Federal Tax Credits for Manufacture of Renewable Energy Storage Products

An announcement was received by ZBB Energy on 8 January, 2010 that the company’s application for a $14,685,000 Advanced Energy Manufacturing tax credit has been approved by the Internal Revenue Service under section 48C of the Internal Revenue Code and authorized under the American Reinvestment and Recovery Act.

ZBB will be able to install equipment worth $49.55 million through this tax credit. Equipment will be installed in a facility that ZBB intends to construct in Southeastern Wisconsin. Through this project, ZBB will manufacture its PECC and ZESS energy storage products that are used to store energy from renewable power sources at the facility.

ZBB or a successor interested in ZBB after entering into an agreement with the IRS can utilize the tax credit. This tax credit can also be utilized by a business that is associated in constructing the proposed facility and manufacturing efficient energy storage systems. The tax credit can be carried by ZBB or the entity holding the tax credit for twenty years to offset otherwise taxable revenue.

Modular and integrated power storage systems are designed and built by ZBB at its Menomonee Falls, Wisconsin facility. These power storage systems are used in industrial, commercial, off-grid and utility applications and they also support the transmission of intermittent sources of renewable energy. The efficiency of intermittent renewable energy systems is improved by ZBB’s ZESS and PECC power storage products. This improvement is carried out by linking generation with off-peak recharge and storage and demand site management resulting in cost-effective energy management.

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