The Department of Energy (DOE) and the Department of the Treasury are accepting applications for a program that will make direct payments in lieu of tax credits to companies that create and place in service renewable energy facilities.
The two departments estimate distributing at least $3 billion in financial support to approximately 5,000 wind, biomass, solar and other types of renewable energy production facilities. The funding for this effort will be made available through the American Recovery and Reinvestment Act of 2009 (ARRA).
‘As we move quickly to get our economy back on track and to repair the financial system, we must make investments that lay the foundation for a stronger economic future,’ says Treasury Secretary Timothy Geithner. ‘Too many renewable energy projects have stalled due to a lack of financing.’
ARRA authorizes the Treasury to make direct payments to companies that create and place in service renewable energy facilities beginning Jan. 1 of this year.
Previously, these companies could file for a tax credit to cover a portion of the renewable energy project's cost; under the new program, applicants would agree to forgo future tax credits in favor of an immediate reimbursement of a portion of the property expense. The DOE will assist the Treasury in implementing this program by reviewing the technical merits of the applications.
SOURCE: Department of Energy