News Archive:
2010
April
BILL INTRODUCED TO EXTEND ENERGY MANUFACTURING TAX CREDIT
WASHINGTON, D.C. - April 21, 2010
Rep. Phil Hare, D-Ill., last week introduced H.R. 5041, the Security in Energy and Manufacturing (SEAM) Act, legislation to extend and improve the Advanced Energy Manufacturing Tax Credit program. The Advanced Energy Manufacturing Tax Credit was enacted last year by the American Recovery and Reinvestment Act to provide a 30 percent tax credit for the creation of new manufacturing facilities that produce alternative energy components. The SEAM Act would provide an additional $5 billion and allow the departments of Treasury and Energy to issue grants in lieu of tax credits. The bill would also amend the original program to prioritize facilities that manufacture—rather than just assemble—clean energy components.
CALIF. TO EXCLUDE SECTION 1603 GRANTS FROM TAXABLE INCOME
SACRAMENTO, Calif. - April 9, 2010
Lawmakers yesterday passed S.B. 401, a bill to conform state tax law to federal changes made since 2005. The bill excludes federal Section 1603 renewable energy tax credit cash grants from taxable income in California. Gov. Arnold Schwarzenegger is expected to sign the bill next week.
For questions about this new law or about Section 1603 renewable energy tax credit cash grants, please call Stephen Tracy, CPA, at (415) 356-8000. Or click here to learn more about Novogradac & Company’s renewable energy services.
You can also learn about the latest state and federal renewable energy tax credit developments at Novogradac & Company’s Financing Renewable Energy Conference: Using Tax Credits to Finance Solar, Wind and Other Renewable Sources, April 29-30 in San Francisco, Calif.
March
GOVERNORS URGE EXPANSION OF SECTION 48C TAX CREDIT
WASHINGTON, D.C. - March 24, 2010
A group of 19 governors this week sent a letter to President Barack Obama urging expansion of the Section 48C Advanced Energy Manufacturing Tax Credit that was created by the American Recovery and Reinvestment Act. In January, $2.3 billion was awarded under the program to recipients in 43 states to support manufacturing energy projects. The governors report that these federal resources have leveraged more than $5.4 billion in private investment. In their letter, the governors discuss the success of the tax credit and describe the economic benefits that would come with an expansion.
OREGON GOV. SIGNS BETC REFORM BILL
SALEM, ORE. - March 18, 2010
Oregon Gov. Ted Kulongoski signed House Bill 3680 into law today, reforming the state’s business energy tax credit (BETC) program. The legislation caps renewable energy production and manufacturing tax credits and phases out credits for large wind facilities. Under the new administrative regulations, the state Department of Energy will have additional oversight of the program including project prioritization and stronger controls.
H.B. 3680 will be discussed in more detail in an upcoming Tax Credit Tuesday podcast. Learn more about Oregon’s BETC and other state tax credit programs at Novogradac & Company’s Financing Renewable Energy Conference, April 29-30 in San Francisco, Calif.
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.
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.
February
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.
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.
January
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).