The Department of the Treasury and the Department of Energy have issued guidance for obtaining a cash grant from Treasury in lieu of a production tax credit under section 45 of the Internal Revenue Code (“Code”) or an investment tax credit under Code section 48. Under this
grant program, which was enacted as part of the American Recovery and Reinvestment Act, the Department of the Treasury makes payments to eligible persons who place in service specified energy projects and apply for such payments.

By receiving grant payments for investment in qualified projects, applicants forego all federal tax credits with respect to the project. Applicants must agree to the terms and conditions applicable to the program. The Program Guidance establishes eligibility requirements and
procedures for applying for payments under the grant program.

Click here for full guidance details.