Treasury Guidance Regarding Renewable Energy Grants in Lieu of Tax Credits Released
By Michael D. Haun, Sean C. Honeywill, and Kevin Young
On July 9, 2009, the Treasury Department released long-awaited guidance concerning the application process and eligibility criteria to receive cash grants in lieu of renewable energy tax credits. The grant program was established by Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 (the Act), which was enacted on February 17, 2009. The grant program is anticipated to stimulate the renewable energy sector, which has been slowed by the credit freeze and a lack of interest by tax credit investors. While the guidance includes a sample application form, along with a terms and conditions sheet that must be signed under penalties of perjury by the applicant, the Treasury Department has indicated that it will begin accepting applications on August 1, 2009 via online submission.