U.S. Treasury Grant in Lieu of Tax Credit Program Extended Until December 31, 2011

January 7, 2011
by BRETT SLENSKY
MGKF Special Alert

The U.S. Treasury's ("Treasury") temporary federal grant program for renewable energy projects that was set to expire at the end of 2010 has been extended until December 31, 2011. The one year extension of this popular federal grant program was included in the tax relief package signed by President Obama in the waning days of the 2010 legislative session. The program, which was initially authorized by Section 1603 of the 2009 federal stimulus legislation, allows eligible entities that place certain qualified renewable energy property in service or begin construction on or before December 31, 2011 to receive a grant from Treasury in lieu of claiming either the Investment or Production Tax Credit otherwise available to the entity under the IRS Code for the same renewable energy property. In general, depending on the type of qualified property, the amount of the grant may be as much as 30% of the taxpayer's basis in the property. Examples of eligible projects include: solar, wind, biomass, landfill gas, microturbines, combined heat and power, and geothermal.

If you are considering a renewable energy project for your facility or property, or had shelved such a project in light of the expected expiration of the Section 1603 grant program, now is the time to move forward to ensure the project's ability to qualify for the Section 1603 grant. Renewable energy projects typically have a long lead time and necessarily implicate a full spectrum of legal and technical issues. The attorneys and professionals at Manko, Gold, Katcher & Fox, LLP have worked on these critical project elements from the conceptual design phase through project construction and operation. The following are some of the representative matters that the firm has handled in the renewable energy field:

  • Advised commercial and industrial clients concerning the siting and development of large solar photovoltaic fields at various properties, including closed landfills and Brownfields property.
  • Represented clients developing roof-top solar projects.
  • Counseled commercial clients regarding wind farm development and the purchase of wind generated energy.
  • Drafted and advised clients concerning solar and wind power purchase agreements and agreements between clients and the project contractor/developer.
  • Advised commercial and industrial clients and lending institutions on the availability of grants and tax incentives for energy efficiency and renewable energy projects, and assisted these clients with the preparation of grant applications.

If you have any questions regarding the Section 1603 grant program or any other aspect of your renewable energy project, please contact Bruce Katcher (bkatcher@mgkflaw.com; 484-430-2320), Brenda Hustis Gotanda (bgotanda@mgkflaw.com; 484-430-2327) or Brett Slensky (bslensky@mgkflaw.com; 484-430-2322).