Denver-based NACEL Energy Corp. has provided guidance to shareholders and interested parties concerning the impact of the American Recovery and Reinvestment Act of 2009 on the company's Blue Creek, Channing Flats, Swisher and Hedley Pointe wind power projects, all under way in the Texas Panhandle, as well as the company's pipeline of new wind projects in feasibility in three other states.
Under present federal law, an income tax credit of $0.021/kWh, indexed for inflation, exists for the production of electricity from utility-class wind turbines. This renewable energy production tax credit (PTC), was created under the Energy Policy Act of 1992. The stimulus legislation includes a three-year extension of the PTC. Consequently, the $0.021/kWh tax credit may be applied to all NACEL Energy's existing and proposed wind power generation projects through the new expiration date of Dec. 31, 2012.
However, NACEL Energy believes that the most important aspect of the stimulus legislation is the new option to elect an up-front 30% investment tax credit (ITC) in lieu of the PTC. This option is available to NACEL Energy for all wind power generation facilities that it places in service in 2010, and also for facilities placed in service before 2013, if construction begins before the end of 2010.
Further, the stimulus legislation also allows NACEL Energy, in lieu of the PTC or the ITC, to elect to receive a direct grant from the Department of Treasury equal in amount to the ITC.
The Department of Treasury is required to pay the grant request within 60 days of the date of the company's application, which must be received before Oct. 1, 2011, or the date that the specified company wind facility commences commercial operations.
SOURCE: NACEL Energy Corp.