Renewable Energy Tax Credits News Briefs - April 2011

Friday, April 1, 2011

George Demoulias joined Boston Capital as vice president of Boston Capital Energy (BCE). BCE specializes in structuring and monetizing tax credits for renewable energy projects. Demoulias will also investigate tax credit investment opportunities outside the energy industry. Prior to joining Boston Capital, Demoulias worked for 11 years in State Street Bank and Trust Company's tax advantaged investment group, where he invested in affordable housing funds, film tax credits and renewable energy projects. Demoulias serves on New Generation Energy's board of directors and holds a master's of business administration from Boston College.

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The Department of Energy (DOE) finalized a $343 million loan guarantee to develop the One Nevada Transmission Line (ON Line). The ON Line project is the first transmission project to receive a DOE-guaranteed loan. The project is owned by Great Basin Transmission South LLC and NV Energy and consists of a new 500 kilovolt transmission line that will carry approximately 600 megawatts of electricity through northern Nevada. It will also help integrate existing transmission systems throughout the state, improving grid reliability and efficiency. The 235-mile transmission line will run from Ely, Nev. to north of Las Vegas. It represents the first phase of the Southwest Intertie Project (SWIP), which when completed will carry approximately 2,000 megawatts of electricity from Wyoming and Idaho to the Southwest. The ON Line project's sponsors estimate that it will create about 400 construction jobs.

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The New Jersey Division of Taxation (DOT) ruled that Section 1603 cash grants in lieu of renewable energy tax credits for solar energy property are not taxable as income for the state corporation business tax (CBT). The ruling also states that the basis of the solar property must reduce by half the value of the grant for New Jersey CBT purposes. In addition, if a corporation claims the 30 percent renewable energy investment tax credit (ITC) for federal purposes, the taxpayer will be required to report the reduced expenses and the reduced basis of the energy property on the New Jersey tax return. State taxation of Section 1603 grants is covered in more detail on page 73 of the June 2010 Novogradac Journal of Tax Credits.

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Tom Weirich was appointed to the U.S. Department of Commerce's Renewable Energy and Energy Efficiency Advisory Committee. Weirich, vice president of corporate relations for the American Council on Renewable Energy, will advise Commerce Secretary Gary Locke on the development and administration of programs and policies to expand the competitiveness of the country's renewable energy and energy-efficiency sectors. The committee's focus areas include trade policy development and negotiations; government programs to encourage U.S. producers of renewable energy and energy-efficiency technologies; and the effects of domestic policies and programs on the competitiveness of the country's renewable energy and energy efficiency companies. Weirich's committee term runs to July 14, 2012.

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Solar Roof Development completed the installation of a 700 kilowatt solar system for Kalustyan Corporation's food processing plant in Union, N.J. The installation covers most of the industrial building's 100,000-square-foot rooftop and is expected to reduce Kalustyan's monthly electric bill by 22 percent. The project benefitted from a Section 1603 cash grant in lieu of renewable energy tax credits and 100 percent accelerated depreciation. In addition, Solar Roof expects to receive as much as $400,000 from the sale of solar renewable energy certificates in the next year.

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MBMI Metal Buildings constructed six integrated solar panel parking canopies for a car dealership in San Diego, Calif. The panels are attached to steel framing and double as a source of energy and a vehicle shading system. Financed in part with solar ITCs, the project will supply 18 percent of the dealership's energy usage, reduce the electricity bill by 22 percent and reduce greenhouse gas emissions by nearly 5,200 tons during a 25-year period.

Journal Category: 
Renewable Energy Tax Credits