Category — Government Incentives

While some progress was reported over the past weekend, the budget debate continues in Congress as the critical date of March 4, 2011, draws nearer. On March 4, 2011, the “stop-gap” measure currently in place to fund the government will expire. 

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In a recently decided case, the United States Court of Federal Claims held that Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 compels the United States Treasury Department (“Treasury”) to award cash grants in lieu of renewable energy tax credits under the Section 1603 program to qualified applicants. Treasury has no discretion to refuse to award a grant to an applicant that has met all statutory requirements for the program. [Read more →]

On December 17, President Obama signed into law H.R. 4583, The Tax Relief; Unemployment Insurance Reauthorization and Job Creation Act of 2010 (the “Act”) extending for two years the Bush-era individual income tax rate cuts.  The Act also extends a number of energy related incentives that were set to expire at the end of this year.  The most significant is a one-year extension of the deadline to begin construction of “specified energy property” for purposes of the Treasury cash grant provisions enacted by Section 1603 of the American Recovery and Reinvestment Act of 2009.  In addition, the Act extends 50 percent bonus depreciation for two years (for qualifying property placed in service before January 1, 2013), and allows 100 percent bonus depreciation for qualified property placed in service after September 8, 2010, and before January 1, 2012. [Read more →]

On Friday, less than a month before EPA regulation of greenhouse gas (GHG) emissions under the Prevention of Significant Deterioration (PSD) program is set to begin, EPA announced the finalization of its Finding of Substantial Inadequacy and SIP Call Rule for GHG emissions.  This rule finds that the laws of 13 states do not authorize them to regulate GHG emissions as will now be required as of January 2, 2011.  The SIP Call requires those states to change their laws to authorize GHG regulation and to submit those changed laws as a part of a revised State Implementation Plan (SIP) to EPA for review and approval.  The affected states are Arkansas, Arizona, parts of California, Connecticut, Florida, Idaho, Kansas, Kentucky, Oregon, Nebraska, Nevada (Clark County), Texas, and Wyoming.  [Read more →]

Importers, suppliers, and manufacturers hoping to cash in on federal stimulus money for renewable energy projects provided under the American Reconstruction and Reinvestment Act (ARRA) should be aware of the “Buy American” provisions contained in the bill.  In an effort to ensure that federal stimulus money stays in the country, iron, steel, and manufactured goods funded, in whole or in part, by federal stimulus money must meet the requirements of the Buy American provision, with some exceptions. [Read more →]