Grants in Place of Tax Credits

Treasury Department Now Accepting Applications for Payments in Lieu of Tax Credits for Specified Energy Property

The American Recovery and Reinvestment Act allocated funds for the U.S. Department of the Treasury to make payments to eligible persons who put in service eligible property and who apply for the payments. By accepting payments, eligible individuals are choosing to forgo tax credits for the qualified property in subsequent years.

• Click here for the full guidance
• Application Deadline: October 1, 2011

Non-business and residential energy properties do not qualify for these payments. Individuals who do not qualify for these payments are as follows:

• any Federal, state or local government, including any political subdivision, agency or instrumentality thereof
• tax-exempt organizations (as identified in section 501(c) of the Internal Revenue Code and is exempt from tax under section 501(a) of the Internal Revenue Code)
• Cooperative Electric Company, Clean Renewable Energy Bond Lender, or Governmental Body as defined in paragraph (4) of section 54(j) of the Internal Revenue Code or
• any partnership or other pass-thru entity, any direct or indirect partner (or other holder of an equity or profits interest) of which is an organization or entity described above unless this person only owns an indirect interest in the applicant through a taxable C corporation.

Treasury will make payments to qualified applicants in an amount generally equal to 10% or 30% of the basis of the property, depending on the type of property (see chart below).

Applications may only be submitted after the property is placed in service, or is under construction and the placed in service before the credit termination date (see chart below).

All applications must be received before the statutory deadline of October 1, 2011.

For property placed in service in 2009 or 2010, applications must be submitted after the property has been placed in service and before October 1, 2011. Treasury will review the applications and make payment to qualified applicants within 60 days from the date the completed application is received by Treasury.

For property not placed in service in 2009 or 2010 but for which construction began in 2009 or 2010, applications must be submitted after construction begins but before October 1, 2011. For property not yet placed in service at the time of the application, Treasury will review such applications and notify the applicant if all eligibility requirements that can be determined prior to the property being placed in service have been met. If so, applicants must then submit, within 90 days after the date the property is placed in service, supplemental information sufficient for Treasury to make a final determination. Treasury will conduct a final review of the application at that time and make payment to qualified applicants within 60 days after the supplemental information is received by Treasury.

 

Full guidance is available at http://www.treasury.gov/recovery/docs/guidance.pdf.  The application is available at https://treas1603.nrel.gov/.

The application form requests the applicant’s Data Universal Numbering System (DUNS) number from Dun and Bradstreet. If the applicant does not already have a DUNS number, it may request one at no cost by going to the Dun & Bradstreet (D&B) online registration located at http://fedgov.dnb.com/webform/ or by calling the dedicated toll-free DUNS Number request line at 1-866-705-5711.

Applicants must also register with the Central Contractor Registration (CCR). To register, go to www.ccr.gov/startregistration.aspx. The registration must be completed before a payment can be made.