Treasury Department will begin accepting grant applications this July for
investments by businesses in alternative-energy-generating assets.
U.S. Treasury Department will begin accepting grant applications
this July for
investments by businesses in alternative-energy-generating assets. The grants
can be taken in lieu of federal income tax credits that would otherwise be
available for property placed in service in 2009 and 2010.
grants are available for either the Code Sec. 45 production tax credit or Code
Sec. 48 energy tax credit, and are worth up to 30 percent of the qualifying
investments. Some of the most significant types of alternative energy
property that qualify for the grants include:
Wind energy property;
Fuel cell property;
Solar property; and
to tax consultant firm Grant Thornton, the grant (cash) may be a better option
for taxpayers without taxable income. It could also be beneficial for
taxpayers as part of a financing package. However, keep in mind that, like the
Code Sec. 48 credit, the grant will require a percentage (typically half of the
credit or grant amount) of basis reduction in the asset for tax depreciation
could cut into valuable depreciation deductions under a number of cost-recovery
methods, the firm noted - including regular five-year tax depreciation, 50
percent bonus tax depreciation, or Code Sec. 179 expensing.
are not subject to any overall funding limitation imposed by the U.S. Congress,
and the Treasury could grant well over $100 billion.