Feds Offer ARRA Funds for Renewable Energy Facilities
The U.S. Department of Energy and the U.S. Department of the Treasury are accepting applications for a program that will make direct payments in lieu of tax credits to companies that create and place in service renewable energy facilities. The departments estimate that the government will distribute at least $3 billion in financial support to approximately 5,000 bio-mass, solar, wind, and other types of renewable energy production facilities. The funding for this effort is made available through the American Recovery and Reinvestment Act.
"As we move quickly to get our economy back on track and to repair the financial system, we must make investments that lay the foundation for a stronger economic future," said Treasury Secretary Timothy Geithner. "Too many renewable energy projects have stalled due to a lack of financing. The Recovery Act program will lead to investment in our long-term energy needs, move us toward energy independence, increase jobs at energy-specific businesses, and protect our environment."
The Recovery Act authorized the treasury department to make direct payments to companies that create and place in service renewable energy facilities beginning Jan. 1, 2009. Previously, these companies could file for a tax credit to cover a portion of the renewable energy project's cost; under the new program, applicants would agree to forgo future tax credits in favor of an immediate reimbursement of a portion of the property expense. The Energy Department will assist Treasury in implementing this program by reviewing the technical merits of the applications. Companies interested in applying for the program can visit the U.S. Department of the Treasury's Application Submission page.