LATHAM, N.Y., July 26, 2011 (GLOBE NEWSWIRE) -- Plug Power Inc. (Nasdaq:PLUG) a leader in providing clean, reliable energy solutions, today announced that U.S. Senator Charles E. Schumer has revealed legislation to improve the tax credit for fuel cell-powered industrial vehicles to include fuel cells designed for heavy machinery and off-highway vehicles. Schumer unveiled legislation in the Senate to match that of Congressmen Paul Tonko and Chris Gibson in the House of Representatives.
Plug Power's GenDrive® fuel cells replace lead-acid batteries in electric lift trucks. The current tax credit provides significant incentives to buyers of fuel cells for cars and trucks, and a separate credit for power generation, but neither credit specifically targets fuel cells designed for material handling vehicles. Passing the tax credit will mean a break of between $8,000 and $40,000 for buyers, depending on the nameplate kilowatt capacity or weight of the fuel cell material handling vehicle.
Senator Schumer's legislation is intended to amend section 30B of the Energy Policy Act of 2005, also known as the Alternative Motor Vehicle Credit (AMVC). The proposed legislation expands the definition of "fuel cell motor vehicle" to include fuel cell-powered material handling vehicles. Changes to the AMVC will provide tax credits for companies to invest in fuel cell-powered industrial vehicles, providing additional economic incentives to Plug Power's customers and industry partners.
The bill also reforms section 48C of the tax code, to provide a new qualified fuel cell motive property credit based on a vehicle's nameplate kilowatt capacity – an objective, widely accepted and verified industry standard of measurement.
"Fuels cells save energy and help the environment regardless of whether they're attached to a car or a forklift, and this new legislation will ensure that companies that produce either type of vehicle are treated equally," said Schumer. "By leveling the playing field, we have the potential to create hundreds of jobs here in the Capital Region and to allow Plug Power, one of the world's preeminent manufacturers of fuel cells, to compete on a level playing field."
Plug Power's headquarters are in Latham, NY, where over 100 New York State residents are employed. Extending the tax credit to include Plug Power's customers in the material handling sector, would provide a boost to the company in terms of manufacturing pipeline, job creation and supplier relationships. The Department of Energy currently estimates that the domestic fuel cell industry will create 40,000 jobs over the next ten years. It's critical that domestic fuel cell producers and suppliers are supported under the AMVC credit in order to meet, or exceed, these targets and keep the United States as the leader in fuel cell technology.
"The expansion and improvement of the tax law is a result of the impressive relationship Senator Schumer has been able to establish with companies within the fuel cell industry," said George McNamee, Chairman of the Board of Directors for Plug Power. "His dedication to the commercialization of alternative energy solutions will only make our Capital Region, State and Nation stronger."
"Senator Schumer's progressive legislation sheds light on the remarkable affects that fuel cell market growth can bring to New York State," said Andy Marsh, CEO at Plug Power Inc. "By helping to commercialize sustainable fuel cell power solutions, thousands of green jobs will be created in manufacturing, engineering and supply chain domestically."
About Plug Power Inc.
The architects of modern fuel cell technology, Plug Power revolutionized the industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints. Long-standing relationships with industry leaders forged the path for Plug Power's key accounts, including Wegmans, Whole Foods, and FedEx Freight. With more than 1,200 GenDrive units shipped to material handling customers, accumulating over 2.5 million hours of runtime, Plug Power manufactures tomorrow's incumbent power solutions today. Additional information about Plug Power is available at www.plugpower.com.
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Plug Power Inc. Safe Harbor Statement
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to Plug Power's expectations regarding expected shipments of GenDrive units for 2011 and 2012, reductions in system cost, expanding the set of addressable applications and increasing geographic reach. These statements are based on current expectations that are subject to certain assumptions, risks and uncertainties, any of which are difficult to predict, are beyond Plug Power's control and that may cause Plug Power's actual results to differ materially from the expectations in Plug Power's forward-looking statements including statements regarding the risk that unit orders will not ship, be installed and/or convert to revenue, in whole or in part; the cost and timing of developing Plug Power's products and its ability to raise the necessary capital to fund such development costs; the risk that the previously disclosed expected uses of the Company's recently raised capital may change; the ability to achieve the forecasted gross margin on the sale of Plug Power's products; the actual net cash used for operating expenses may exceed the projected net cash for operating expenses; the cost and availability of fuel and fueling infrastructures for Plug Power's products; market acceptance of Plug Power's GenDrive system; Plug Power's ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; the cost and availability of components and parts for Plug Power's products; Plug Power's ability to develop commercially viable products; Plug Power's ability to reduce product and manufacturing costs; Plug Power's ability to successfully expand its product lines; Plug Power's ability to improve system reliability for GenDrive; competitive factors, such as price competition and competition from other traditional and alternative energy companies; Plug Power's ability to manufacture products on a large-scale commercial basis; Plug Power's ability to protect its intellectual property; the cost of complying with current and future governmental regulations; and other risks and uncertainties discussed under "Item IA-Risk Factors" in (i) Plug Power's annual report on Form 10-K for the fiscal year ended December 31, 2010, filed with the Securities and Exchange Commission ("SEC") on March 31, 2011 and (ii) in Plug Power's quarterly report on Form 10-Q for the quarter ended March 31, 2011 filed with the SEC on May 13, 2011, as well as in the other reports Plug Power files from time to time with the SEC. Plug Power does not intend to, and undertakes no duty to update any forward-looking statements as a result of new information or future events.