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IRS PROVIDES GUIDANCE FOR TAX TREATMENT OF SMART GRID INVESTMENT GRANTS

Thursday, March 11, 2010 - 1:15AM

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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