Update: An Analysis of the U.S. Treasury's Guidance on New Energy Grant Program
By Pamela M. Charles and Durham C. McCormick, Jr.
On July 9, 2009, the U.S. Treasury Department issued Program Guidance for Payments for Specified Energy Property in Lieu of Tax Credits (“Section 1603 payments”) under the American Recovery and Reinvestment Act of 2009.
Section 1603 payments will be made to eligible persons who place in service specified energy property (“qualified renewable energy facility”), in lieu of both the Energy Credit (Investment Tax Credit) and the Production Tax Credit. The guidance was released together with the Application and additional Terms and Conditions.
Key features of the guidance were highlighted in our July 9, 2009, alert. Today's alert provides more details from the guidance and an analysis of its practical implications. We have incorporated all of the information contained in our earlier alert.
