American Reinvestment and Recovery Act of 2009 (ARRA)

American Reinvestment and Recovery Act of 2009 (ARRA)


In order to get the American Economy back on track, the government started the American Reinvestment and Recovery Act of 2009 (ARRA). The American Reinvestment and Recovery Act of 2009 was put into action by President Obama to create jobs and place funding into areas that desperately need it.

The funding of the American Recovery Act of 2009 provides $787 billion dollars to be spent by the government over the next decade in the areas of aid to unemployed workers, cash deposits for social security, infrastructure, healthcare, education, energy, homeland security, and law enforcement. Below are two graphs showing where American Reinvestment and Recovery Act of 2009 money will be spent.

In the first year, most of the American Reinvestment and Recovery Act money will be spent catching the nation up on under-funded areas such as healthcare and education. Then the bill will put money into long-term investments such as the smart-grid system, renewable energy, and infrastructure.

$30 billion in guaranteed loans will be given out by the Department of Energy for renewable energy projects and to modernize the grid. The goal of modernizing the grid is to reduce energy waste. Right now, electricity is dumped onto the grid with no true idea of how it is being used. With the smart grid, utility companies can determine the amount of energy to dumb on the system based on useage and determine where the energy is being consumed.

ARRA Composition Spending

Additional money is being spent on renewable projects in Nevada, Rhode Island, Vermont, and Wisconsin. According to, these states have plans to prioritize energy savings, create jobs, and reduce emission of greenhouse gases.

Also, the department of Treasure awarded $2.3 billion in tax credits for companies to expand domestic renewable manufacturing facilities. Known as the Manufacturing Tax Credit (MTC). This will help protect domestic leadership and jobs in renewable energy.

Applications for the Manufacturing Tax Credit (MTC) will be reviewed by the Department of Energy and IRS. Money will be awarded based on job creation, reduction of carbon emissions, innovation, and timeframe of implementing projected plans. Manufacturing that is available for tax credit includes:

  • Renewable Energy
  • Energy storage
  • Renewable energy transmission
  • Refining
  • Energy conservation
  • Electric vehicles and components
  • Carbon dioxide capture

Hopefully, with these steps, we can see America bring back some manufacturing and push us in the direction of renewable innovation. Federal support for renewable energy through the American Reinvestment and Recovery Act of 2009 and the states following suit with tax rebates and incentives are pushing forward the deployment of renewable energy.

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