Category — Tax, Structure & Financing

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 →]

Last week the Treasury issued new guidance in the form of questions and answers (FAQ) as to when “construction begins” for renewable energy projects that may be eligible for a cash grant in lieu of an investment tax credit under section 1603 of the American Recovery and Reinvestment Act of 2009.  This alert summarizes the Treasury guidance to date on this issue, including the FAQ.  You may access a copy of the new FAQ here, the Treasury Guidance document here and Treasury’s earlier FAQ here. Our prior report on the cash grant program is available here. [Read more →]

Senators John Kerry and Joe Lieberman have sponsored “The American Power Act” (“APA”), a comprehensive energy and climate change bill.  For a summary of the bill, please visit this alert. Among other things, the APA includes significant incentives for the nuclear power industry, including several tax provisions intended to encourage construction of new nuclear power plants. The APA would also establish an expedited procedure for issuing construction and operating licenses for new nuclear reactors, expand the federal loan guarantee program for nuclear energy development, and fund spent fuel recycling research. [Read more →]