By Scott Smith Kokomo Tribune
---- — The U.S. Department of Energy awarded $10.6 million in tax credits to Delphi’s Kokomo Power Electronics facility in hopes of boosting hiring and production at the hybrid vehicle electronics plant.
An Energy Department release said Delphi Automotive Systems plans to invest $35.3 million in equipment and tooling at the Kokomo plant to help further scale up product validation and manufacturing.
The funding, through the DOE’s Advanced Energy Manufacturing Tax Credit program, could help Delphi double capacity at the plant to more than 500,000 units a year and create more than 150 new jobs.
One of the success stories of the federal government’s “green energy” investment from the 2009 stimulus bill, Delphi matched a $93 million federal grant to create the company-owned startup on East Morgan Street.
The plant currently makes battery controllers for hybrid vehicles on a small scale, with a capacity to manufacture about 200,000 units a year. About 40 to 50 full-time employees work at the plant.
The Advanced Energy Manufacturing Tax Credit provides developers with an investment tax credit of 30 percent for the manufacture of particular types of energy equipment. Thursday, DOE reallocated $150 million in tax credits that were not used by the previous awardees. The credits must be used to support projects that will be in service by 2017.