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Federal Stimulus Monies on the Way
09/21/2009
Reprinted from the Great Lakes WIND Network newsletter
Three long-awaited announcements were made in Washington over the past month that will begin the process of providing cash for new wind projects and tax credits for manufacturers wanting to invest in capital equipment for alternative energy component production. Available now are procedures for making applications to all the programs promoting wind in the American Reinvestment and Recovery Act of 2009 (ARRA) passed into law by Congress this past February.
Of most interest to manufacturers, the Internal Revenue Service is offering a "Manufacturing Investment Tax Credit" (MTC) of 30% of qualified projects that re-equip, expand, or establish a manufacturing facility for the production of specified energy property. This includes property designed for use in the production of energy from wind as well as components for turbines. Manufacturers anywhere in the wind supply chain are encouraged to apply.
Here's an important note: Preliminary applications must have been made no later than September 16, 2009. As per the procedures, final applications are due on October 16, 2009, and decisions will be announced on January 15, 2010. Criteria for the awards include job creation, reducing air pollutants or emissions of greenhouse gasses, potential for technological innovation and commercial deployment, and shortest project time from certification to completion. Details of this program and application guidelines can be found at http://www.energy.gov/recovery/documents/Federal_Notice_48C.pdf. Questions and applications can be submitted to 48Capplications@hq.doe.gov. Up to $2.3 billion in MTCs will be allocated by the Department of Energy and the IRS for advanced energy projects. Projects must be completed within four years of tax credit acceptance.
For wind project developers, the U.S. Department of Energy provided procedures for applying for a cash grant from the Department of the Treasury in lieu of tax credits for renewable energy facilities placed in service. In another action, DOE Secretary Steven Chu provided application information for up to $2 billion in subsidy costs, provided by the Recovery Act, to support billions in federal loans for renewable energy and electrical energy transmission projects.
As Secretary of the Treasury Timothy Geithner explained, "Too many renewable energy projects have stalled due to a lack of financing. The Recovery Act will lead to investment in our long-term energy needs, move us toward energy independence, increase jobs at energy-specific businesses, and protect our environment."
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