By Jeffrey Howell, Esq.
Already a major driver of growth in the renewable energy sector, the extension of Section 1603 cash grants, signed by President Obama on December 17, 2010, allows eligible renewable projects to begin construction by December 31, 2011. Section 1603, part of the American Recovery and Reinvestment Act of 2009, provides cash grants in Lieu of Renewable Energy Tax Credits. The program benefit is that it eliminates the tax credit in exchange for direct payment, a significant boon to financing solar, wind, and renewable energy projects.
Specifically, the extension applies to project construction beginning in 2009-2011 and placed into service by the end of 2012 for wind facilities, the end of 2013 for biomass and geothermal, and by the end of 2016 for solar energy facilities. Construction begins when physical work of a significant nature begins (at least 5% of the total project cost has been incurred). Grants may total 10% or 30% of the basis, depending on the type of property. The program is responsible for nearly $6 billion in grants to date, and there is no cap. The grant extension will offer a boon to solar and wind, as well as other renewable energy projects.
Endsley + Associates is proud to be a part of the growing cleantech and renewable energy sectors. The firm is uniquely positioned to handle business transactional and litigation needs, as well as real estate transactions with perspectives and understanding of cleantech, renewable energy, sustainable building, and carbon emissions.
Reference sites:
http://www.treasury.gov/initiatives/recovery/Pages/1603.aspx
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US53F&
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