Category — Government Incentives

Qualifying solar, wind and other renewable energy generation projects can choose either a 30% investment tax credit (“ITC”) or a 30% Treasury cash grant in lieu of the ITC. To qualify for the cash grant, projects must either be operational (placed in service) by the end of 2010 or else must begin construction by then and be placed in service by the end of 2012 for wind and by the end of 2016 for solar. To learn more about the Treasury grant program, visit the U.S. Treasury Web site. Please also view our summary of the program, and updates here and here. [Read more →]

On August 10, 2010, the Department of Energy (“DOE”) issued a new loan guarantee solicitation for “Projects that Manufacture Commercial Technology Renewable Energy Systems and Components” (the “Solicitation”).  The Solicitation is issued in support of Section 1705 of Title XVII of the Energy Policy Act of 2005.  DOE will make available up to $750,000,000 to pay credit subsidy costs of loan guarantees issued under the Solicitation.  The Solicitation has a First Part I Submission due date of September 30, 2010 and a Last Part I Submission due date of November 30, 2010.  Part II Applications are due first on November 30, 2010 and last on January 31, 2011. [Read more →]

The Department of Energy (“DOE”) Loan Guarantee Program provides loan guarantees under Title XVII of the Energy Policy Act of 2005 to eligible energy projects in response to solicitations issued by the DOE.  Congress provided additional support for the Loan Guarantee program by appropriating $6 billion for credit subsidy costs pursuant to the American Recovery and Reinvestment Act of 2009. [Read more →]

Tax Credit Bonds are taxable obligations issued by state and local governments and governmental entities for a wide array of qualifying purposes.  Unlike bonds that bear interest that is exempt from federal gross income tax, Tax Credit Bonds entitle the bondholder to a direct subsidy in the form of a federal tax credit, and in some cases receipt of interest that is includable in gross income for federal income tax purposes, rather than the issuer paying the bondholder tax‑exempt interest.  There are a variety of purposes for which Tax Credit Bonds can be issued, two of which relate to the areas of renewable energy and conservation:  (1) new clean renewable energy bonds (“New CREBs”)* and (2) qualified energy conservation bonds (“QECBs”).  Both New CREBs and QECBs are subject to certain rules applicable to tax credit bonds and to federal labor standards.  See General Tax Credit Bond Rules and Davis‑Bacon Labor Standards below. [Read more →]

On June 9, 2010, Senator Dick Lugar (R-IN) introduced an energy legislation alternative to the Kerry-Lieberman and Waxman-Markey bills, entitled the “Practical Energy and Climate Plan” (S. 3464).  The bill is co-sponsored by Senators Lindsey Graham (R-SC), who earlier this year was a co-sponsor of the Kerry-Lieberman bill before withdrawing his support (see May 14, 2010 edition of the WER), and Lisa Murkowski (R-AK), whose resolution to disapprove EPA’s endangerment finding on greenhouse gases (“GHG”) was defeated in the Senate on Thursday (see “Murkowski Resolution Defeated” in this edition of the WER). [Read more →]