Category — Tax, Structure & Financing

Businesses typically are allowed to deduct the costs of capital expenditures over time according to various depreciation schedules. In 2008 and 2009 businesses were allowed to deduct 50 percent of the cost of eligible property (generally, tangible personal property with recovery periods of 20 years or less) in the year of acquisition. [Read more →]

IRS Notice 2010-62 provides interim guidance regarding the codification of the economic substance doctrine under section 7701(o) of the Internal Revenue Code. The notice applies with respect to transactions entered into on or after March 31, 2010.  For prior coverage of this issue, please see this prior alert. [Read more →]

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 →]