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.
All applicants that receive awards under the section1603 program are required to report certain information annually to the Treasury Department for a period of five years. Reports are due annually, 30 days after the anniversary date of the date the property was placed in service. Failure to file can result in recapture of the grant. The form used to submit this report is now available online and can be completed and submitted through the online application system. Applicants will receive a reminder notification via email 30 days before the report is due. A copy of a sample annual report may be viewed here.
Craig M. Kline
Project Development & Finance Practice