Tax
7/14/2009 10:00:51 AM EST
Sustainability, CleanTech and Climate Change Alert
Treasury Releases Terms and Conditions for Renewable Energy Grant Program
On July 9, the Treasury released terms and conditions of the highly anticipated "1603 Program," which provides cash grants in lieu of tax credits for renewable energy property. The Treasury is not yet accepting applications, but to expedite implementation of the program, it has released guidance and a sample application so companies can prepare successful applications in advance of the launch of the Web-based application in the coming weeks. As businesses prepare their applications, a review of the terms and conditions is critical now.
Background
President Obama signed into law the American Recovery and Reinvestment Act of 2009 (ARRA),1 which contained $787 billion in tax incentives and spending provisions intended to help lift the economy out of recession. The legislation includes significant energy-related tax incentives to spur investment in renewable energy and implementation of a "green" economic recovery plan. Among these new incentives, ARRA added a new provision authorizing the Treasury Secretary to provide grants in lieu of the federal tax credits for certain eligible property under Section 1603.
Todd Reinstein’s Sustainability, CleanTech and Climate Change Alert can be read in its entirety at the Tax Law Center. | Rate this article: |
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