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TREASURY UPDATES 1603 GUIDANCE ON BEGINNING OF CONSTRUCTION

WASHINGTON, D.C. - March 16, 2010

The Treasury Department yesterday updated its program guidance for the Section 1603 renewable energy tax credit cash grant exchange program. Section IV C, Beginning of Construction, was updated with a new passage regarding what is considered physical work of a significant nature for the purposes of the cash grant program. In the updated guidance, the Treasury Department says that physical work of a significant nature does not include preliminary activities such as planning or designing, securing financing, exploring, researching, clearing a site, test drilling of a geothermal deposit, test drilling to determine soil condition, or excavation to change the contour of the land (as distinguished from excavation for footings and foundations). No other changes were made to the guidance.

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IRS PROVIDES GUIDANCE FOR TAX TREATMENT OF SMART GRID INVESTMENT GRANTS

WASHINGTON, D.C. - March 11, 2010

The Department of Treasury and the Department of Energy yesterday released guidance on the tax treatment for grantees receiving Recovery Act funding under the $3.4 billion Smart Grid Investment Grant program. In Revenue Procedure 2010-20, the Internal Revenue Service provides a safe harbor under section 118(a) of the Internal Revenue Code for corporations receiving funding under the program. The Treasury Department says that with the determination that Smart Grid Investment Grants to corporations are non-taxable, corporate utilities will be able to launch their investments with a clear indication of the tax status for their projects. This decision will allow the Department of Energy to move forward quickly over the coming weeks to finalize grant agreements.

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BILL WOULD EXTEND, IMPROVE RECOVERY ACT ENERGY PROGRAM

WASHINGTON, D.C. - February 15, 2010

On February 4, Rep. Earl Blumenauer, D-Ore., introduced H.R. 4599, the Renewable Energy Expansion Act, a bill that allows taxpayers to elect to receive a tax credit that functions as a direct payment for investing in or producing renewable energy. The amount of the payment is tailored to equal the subsidy provided under the American Recovery and Reinvestment Act's energy grant program. The legislation provides taxpayers the option to receive the new tax credit or to use the grant program. The legislation would also carry forward existing guidance and make technical changes that Rep. Blumenauer says would improve the underlying grant program. Finally, H.R. 4599 extends the tax credit until January 1, 2013.

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FEDERAL BUDGET PROPOSAL EXTENDS 48C MANUFACTURING TAX CREDIT

WASHINGTON, D.C. - February 1, 2010

Today President Barack Obama transmitted the fiscal year (FY) 2011 proposed budget to the Congress, including a proposal to provide an additional $5 billion in credits for the Section 48C Advanced Energy Manufacturing Tax Credit. The manufacturing tax credit was created by the American Recovery and Reinvestment Act and on January 8 the Department of Energy awarded $2.3 billion in tax credits for clean energy manufacturing projects. Click here for more information about the program.

Tune in to the February 9 Tax Credit Tuesday podcast to hear more about this proposal and the next steps in the federal budget process.

DOE AWARDS $2.3 BILLION IN ENERGY MANUFACTURING TAX CREDITS

WASHINGTON, D.C. - January 8, 2010

President Obama today announced the award of $2.3 billion in Recovery Act Advanced Energy Manufacturing Tax Credits for clean energy manufacturing projects. One hundred eighty three projects in 43 states will create tens of thousands of high quality clean energy jobs and the domestic manufacturing of advanced clean energy technologies, including solar, wind and efficiency and energy management technologies, according to the Department of Energy (DOE). Click here for a list of the 183 projects selected for tax credits. Click here for more information about the Section 48C Advanced Energy Manufacturing Tax Credit.

RECOVERY ACT MAY STIMULATE COMMUNITY-SCALE WIND PROJECTS

BERKELEY, Calif - January 8, 2010

Two renewable energy provisions included in the American Recovery and Reinvestment Act of 2009 may help shovel-ready community wind projects move ahead, according to a new report released yesterday by the U.S. Department of Energy’s Lawrence Berkeley National Laboratory (LBNL). “Community wind” power development refers to wind projects that are locally owned, consist of utility-scale turbines, and are interconnected on either the customer or utility side of the electric meter. The report, "Revealing the Hidden Value that the Federal Investment Tax Credit and Treasury Cash Grant Provide To Community Wind Projects," analyzed the impact of the ability for qualifying wind projects to choose either a 30 percent investment tax credit (ITC) or a 30 percent cash grant in lieu of the production tax credit (PTC).

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