On July 31, 2009, the U.S. Department of the Treasury and the U.S. Department of Energy (DOE) announced that they are now accepting applications for renewable energy projects seeking grant payments in lieu of tax credits. As discussed in a previous McDermott Will & Emery On the Subject entitled “Energy Tax Provisions Included in American Recovery and Reinvestment Act of 2009," the 2009 American Recovery and Reinvestment Act permits taxpayers placing renewable energy projects into service in 2009 or 2010, or after 2010 (so long as construction begins in either 2009 or 2010 and is completed prior to 2013 for wind facilities, 2017 for solar facilities, or 2014 for other energy technologies) to claim a grant in lieu of the investment tax credit or production tax credit.
The Treasury and DOE estimate that at least $3 billion in financial support will be distributed to approximately 5,000 renewable energy production facilities pursuant to this program. In most cases, the grant amount for which taxpayers are eligible is 30 percent of the total cost of a renewable energy facility.
In addition to the online application, the Treasury has posted guidance, terms and conditions, and a sample application form. For more information, see McDermott Will & Emery On the Subject “Treasury Issues Guidance on Applying for Cash Grants in Lieu of Tax Credits.” The Treasury’s website now also provides a form of Accountant’s Certification for property placed in service having a cost basis in excess of $500,000 or requesting a grant in excess of $1 million, forms and information regarding the assignment of grant payments to financial institutions, and a link to the Central Contractor Registration (CCR). All applicants must be registered with the CCR before any grant payment can be made.
The Treasury Department online application and other information can be found here.