Two U.S Senators are putting forward legislation to encourage companies and corporations to create clean-energy technology with an emphasis on creating jobs in communities most affected by economic changes.

Joe Manchin, D-W.V., Sens. Debbie Stabenow, and D-Mich., put forward the Energy manufacturing Act in American Jobs 2021 which they believe will incentivize businesses to manufacture products with tax credits. This new measure will commit 8 billion USD for investment in manufacturers to retrofit current properties or develop brand new facilities. The sites can create energy-related products like renewable energy equipment, items that can store carbon dioxide, and energy storage technology.

This bill is a modification of the advanced energy manufacturing tax credit, which supports manufacturing facilities wanting to manufacture clean-energy products. The $8 billion will be spread among communities affected by closures in the automobile and coal industries.

Stabenow and Manchin spoke about their experiences concerning changing economic trends and the associated effect on states. Manchin stressed how the coal industry’s decline not only depleted West Virginia’s municipal resources but also cut employment opportunities. Stabenow highlighted the near-collapse of the automobile industry in Michigan during the great recession.

Stabenow introduced the first $2.3 billion tax credit, which, according to her, will allow companies to expand the existing operations in Michigan or construct new facilities for manufacturing clean-energy products. She noted that adapting to a clean-energy economy is a significant opportunity for the United States and remarked that businesses and workers need support to make that happen.

Various businesses and organizations such as General Motors Co, Ford Motor Co, The Sierra Club, and United Miners Workers Of America have already voiced their support for the new legislation. Secretary Jennifer Granholm also supported extending tax credits to zones most affected by economic changes. The Michigan Governor noted that there was an opportunity to focus on technologies that minimize carbon emissions in coal and fossil fuel states.

Granholm’s nomination was confirmed last month by the senate. The nominee was backed by the Energy and Natural Resources Committee chairman and Manchin but was opposed by Sen. Shelley Moore Capito, R-W.Va.