President Barack Obama will urge the U.S. Congress on Friday to extend a manufacturing tax credit by $5 billion to foster private investment in clean energy, a White House official said.
Obama, on a campaign swing for Democrats who face a tough fight in November's congressional elections, will talk about his efforts to boost the economy later on Friday.
He will also specifically seek support to extend a manufacturing credit for advanced energy that could leverage billions more in private capital, the White House said.
The original credit was part of Obama's $787 billion emergency recovery program he signed in 2009 to help lift the U.S. economy out of the worst recession in a generation.
But public anxiety over government spending amid record U.S. deficits has forced Obama to explain his actions. He must also counter Republican complaints the country cannot afford any more stimulus, while the White House argues that withdrawing support too soon could hurt the economic recovery.
"The president believes that if an American company wants to create jobs and grow, we should be there to help them do it," the White House official said.
"Providing an additional $5 billion in manufacturing tax credits will not only help leverage an additional $12 billion in private capital investment in ready projects, but also create tens of thousands of additional clean energy manufacturing jobs across the country," the official said.