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Tax Incentives for US Investors
www.dsireusa.org - Database of State Incentives
Solar Energy Rebates
Under the new California Solar Initiative, California solar power rebates and tax incentives can cut the cost of your system by
as much as 60%. But solar energy rebates go down the longer you wait, so it pays to install solar now for your home or
business.
Here are some of the solar energy rebates and tax incentives available:
How to Take Advantage of Federal Stimulus Funding
Solar Energy Rebates
Utility rebate programs are available up to 30% of the total cost of the system.
Federal, Investment Tax Credit
Residential – 30% Energy Tax Credit, IRS Form 5695
Commercial - 30% Investment Credit, IRS Form 3468
Federal, Pre-1936 Buildings
10% Investment Credit, IRS Form 3468
Federal, Certified Historic Structures
20% Investment Credit, IRS Form 3468
Federal, Agricultural Credits
10% Investment Credit, IRS Form 3468
Federal, Depreciation
Business - Section 179 Deduction (up to $250,000 for 2009) plus 50% Bonus Depreciation and/or 5 year MACRS Depreciation
State, Depreciation - California Solar Power Rebates
Business 5-Year depreciation method for non-Corporate
12-Year Class Life/Recovery period for Corporate Business Taxpayers
State, Property Tax Exempt - California Solar Power Rebates
Solar installations are property tax exempt .
(California Revenue and Taxation Code Section 6353.5)
Property Value
An increase in property value by 3% (according to Appraisers Journal)
ROI
3 to 8 year return on investment, 25 year positive after tax cash flow.
(It compares to a 15% CD)
Helpful Links
SCE Incentives
LADWP Incentives
CSI (California Solar Initiative) Guideline
Solar Energy Rebates
Under the new California Solar Initiative, California solar power rebates and tax incentives can cut the cost of your system by
as much as 60%. But solar energy rebates go down the longer you wait, so it pays to install solar now for your home or
business.
Here are some of the solar energy rebates and tax incentives available:
How to Take Advantage of Federal Stimulus Funding
Solar Energy Rebates
Utility rebate programs are available up to 30% of the total cost of the system.
Federal, Investment Tax Credit
Residential – 30% Energy Tax Credit, IRS Form 5695
Commercial - 30% Investment Credit, IRS Form 3468
Federal, Pre-1936 Buildings
10% Investment Credit, IRS Form 3468
Federal, Certified Historic Structures
20% Investment Credit, IRS Form 3468
Federal, Agricultural Credits
10% Investment Credit, IRS Form 3468
Federal, Depreciation
Business - Section 179 Deduction (up to $250,000 for 2009) plus 50% Bonus Depreciation and/or 5 year MACRS Depreciation
State, Depreciation - California Solar Power Rebates
Business 5-Year depreciation method for non-Corporate
12-Year Class Life/Recovery period for Corporate Business Taxpayers
State, Property Tax Exempt - California Solar Power Rebates
Solar installations are property tax exempt .
(California Revenue and Taxation Code Section 6353.5)
Property Value
An increase in property value by 3% (according to Appraisers Journal)
ROI
3 to 8 year return on investment, 25 year positive after tax cash flow.
(It compares to a 15% CD)
Helpful Links
SCE Incentives
LADWP Incentives
CSI (California Solar Initiative) Guideline
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U.S. Treasury Department
Office of Public Affairs
FOR IMMEDIATE RELEASE: July 31, 2009
CONTACT: Treasury Public Affairs (202) 622-2960
Energy Public Affairs (202) 586- 4940
Treasury, Energy Now Accepting Applications for
Funding for Renewable Energy Projects
Direct Cash Payments Will Advance Economic Development, Expand Renewable Energy Use
WASHINGTON – With the goal of expanding development of renewable energy projects throughout the United States and
creating new jobs, the U.S. Department of the Treasury and the U.S. Department of Energy today announced they are now
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 two Departments estimate distributing 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 towards energy independence, increase jobs at energy-specific businesses, and protect our environment.”
Said Secretary Chu: "This program will play a major role in encouraging private sector capital to invest in clean energy
development, creating new jobs that can't be outsourced. It is an investment that will continue to help our economy grow and
ensure advancement in clean and renewable energy development."
The Recovery Act authorized Treasury to make direct payments to companies that create and place in service renewable
energy facilities beginning January 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.
In previous years, the tax credit has been widely used. The rate of new renewable energy installations has fallen since the
economic downturn began, as projects had a more difficult time obtaining financing. The Departments of the Treasury and
Energy expect a fast acceleration of businesses applying for the direct cash payment in lieu of the tax credit, allowing for an
immediate stimulus in local economies.
Earlier this year, Treasury and Energy held a stakeholder outreach conference call to assist companies in applying for the
program. They also made available in advance the program’s terms and conditions, guidance, and a sample application so
that companies could prepare applications in advance of the launch of the web-based application, aimed at expediting the
distribution of program funds to eligible businesses.
Companies interested in applying for the program can visit here for more information.
=======================================================================
IRS Circular 230 Disclosure: U.S. federal tax advice in the foregoing message from Milbank, Tweed, Hadley & McCloy LLP is
not intended or written to be, and cannot be used, by any person for the purpose of avoiding tax penalties that may be
imposed regarding the transactions or matters addressed. Some of that advice may have been written to support the
promotion or marketing of the transactions or matters addressed within the meaning of IRS Circular 230, in which case you
should seek advice based on your particular circumstances from an independent tax advisor.
Office of Public Affairs
FOR IMMEDIATE RELEASE: July 31, 2009
CONTACT: Treasury Public Affairs (202) 622-2960
Energy Public Affairs (202) 586- 4940
Treasury, Energy Now Accepting Applications for
Funding for Renewable Energy Projects
Direct Cash Payments Will Advance Economic Development, Expand Renewable Energy Use
WASHINGTON – With the goal of expanding development of renewable energy projects throughout the United States and
creating new jobs, the U.S. Department of the Treasury and the U.S. Department of Energy today announced they are now
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 two Departments estimate distributing 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 towards energy independence, increase jobs at energy-specific businesses, and protect our environment.”
Said Secretary Chu: "This program will play a major role in encouraging private sector capital to invest in clean energy
development, creating new jobs that can't be outsourced. It is an investment that will continue to help our economy grow and
ensure advancement in clean and renewable energy development."
The Recovery Act authorized Treasury to make direct payments to companies that create and place in service renewable
energy facilities beginning January 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.
In previous years, the tax credit has been widely used. The rate of new renewable energy installations has fallen since the
economic downturn began, as projects had a more difficult time obtaining financing. The Departments of the Treasury and
Energy expect a fast acceleration of businesses applying for the direct cash payment in lieu of the tax credit, allowing for an
immediate stimulus in local economies.
Earlier this year, Treasury and Energy held a stakeholder outreach conference call to assist companies in applying for the
program. They also made available in advance the program’s terms and conditions, guidance, and a sample application so
that companies could prepare applications in advance of the launch of the web-based application, aimed at expediting the
distribution of program funds to eligible businesses.
Companies interested in applying for the program can visit here for more information.
=======================================================================
IRS Circular 230 Disclosure: U.S. federal tax advice in the foregoing message from Milbank, Tweed, Hadley & McCloy LLP is
not intended or written to be, and cannot be used, by any person for the purpose of avoiding tax penalties that may be
imposed regarding the transactions or matters addressed. Some of that advice may have been written to support the
promotion or marketing of the transactions or matters addressed within the meaning of IRS Circular 230, in which case you
should seek advice based on your particular circumstances from an independent tax advisor.
August 21, 2009
Member Alert: Update on Section 1603 Cash Grants for Renewable Energy Project Funding
The Department of Energy has notified ACORE to encourage Members to apply now for 1603 cash grants in lieu of tax credits
U.S. Department of the Treasury and the U.S. Department of Energy announced at the end of July that they would be 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 two Departments estimated distributing 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.
The DOE estimates the $3 billion in grants could enable between $10-14 billion of capital investment in projects that would not
be able to be financed without this program -- projects that are ready to be built but are waiting to close financing and start
construction.
Tax credits for renewable energy projects can be turned into upfront capital, enabling companies and firms to secure financing
and begin construction.
There is no cap on the program funding and as long as applications are submitted by the statutory deadline of October 1, 2011
they will be considered. Early applicants whose applications are accepted will be included in a forthcoming announcement from
the DOE when the program reaches $1 billion in approved applications on/about the end of August.
For the 1603 Grant terms & conditions, guidance, and a sample application, visit: www.treas.gov/recovery/1603.shtml
Read the US Treasury’s Press Release: TREASURY, ENERGY NOW ACCEPTING APPLICATIONS FOR FUNDING FOR RENEWABLE
ENERGY PROJECTS; Direct Cash Payments Will Advance Economic Development, Expand Renewable Energy Use
If you have any specific questions about the 1603 grant applications, we recommend that you work with a law firm or financial
consultant. But if you have any general questions, please contact Jeramy Shays, Policy Associate at ACORE shays@acore.org.
About ACORE
ACORE, a 501(c)(3) membership nonprofit organization headquartered in Washington, D.C., is dedicated to bringing renewable
energy into the mainstream of the US economy and lifestyle through research and communications programs and membership
committees. ACORE’s membership works in all sectors of the renewable energy industries including wind power, solar energy,
geothermal energy, hydropower, ocean energy, biomass, biofuels, and waste energy. ACORE provides a common platform for
the wide range of interests in the renewable energy community including end users, technology companies, manufacturers,
utilities, professional service firms, financial institutions, colleges and universities, associations, nonprofit organizations and
government agencies. ACORE serves as a thought leadership forum through which these parties work together on common
interests. ACORE co-organizes the REFF-Wall Street and REFF-West Finance Conferences, the RETECH All-Renewable Energy
Conference & Exhibition, the Phase II National Policy Forum in Washington, DC, and hosts both domestic and global policy
events furthering the mission of renewable energy. Additional information is available at www.acore.org.
This message was sent to jim@usgreenenergyinc.com by:
ACORE (info@acore.org)
1600 K Street NW, Suite 700, Washington, DC, 20006 • 202-393-0001
Subscribe • Modify Your Profile • Unsubscribe • Forward To A Friend
Member Alert: Update on Section 1603 Cash Grants for Renewable Energy Project Funding
The Department of Energy has notified ACORE to encourage Members to apply now for 1603 cash grants in lieu of tax credits
U.S. Department of the Treasury and the U.S. Department of Energy announced at the end of July that they would be 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 two Departments estimated distributing 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.
The DOE estimates the $3 billion in grants could enable between $10-14 billion of capital investment in projects that would not
be able to be financed without this program -- projects that are ready to be built but are waiting to close financing and start
construction.
Tax credits for renewable energy projects can be turned into upfront capital, enabling companies and firms to secure financing
and begin construction.
There is no cap on the program funding and as long as applications are submitted by the statutory deadline of October 1, 2011
they will be considered. Early applicants whose applications are accepted will be included in a forthcoming announcement from
the DOE when the program reaches $1 billion in approved applications on/about the end of August.
For the 1603 Grant terms & conditions, guidance, and a sample application, visit: www.treas.gov/recovery/1603.shtml
Read the US Treasury’s Press Release: TREASURY, ENERGY NOW ACCEPTING APPLICATIONS FOR FUNDING FOR RENEWABLE
ENERGY PROJECTS; Direct Cash Payments Will Advance Economic Development, Expand Renewable Energy Use
If you have any specific questions about the 1603 grant applications, we recommend that you work with a law firm or financial
consultant. But if you have any general questions, please contact Jeramy Shays, Policy Associate at ACORE shays@acore.org.
About ACORE
ACORE, a 501(c)(3) membership nonprofit organization headquartered in Washington, D.C., is dedicated to bringing renewable
energy into the mainstream of the US economy and lifestyle through research and communications programs and membership
committees. ACORE’s membership works in all sectors of the renewable energy industries including wind power, solar energy,
geothermal energy, hydropower, ocean energy, biomass, biofuels, and waste energy. ACORE provides a common platform for
the wide range of interests in the renewable energy community including end users, technology companies, manufacturers,
utilities, professional service firms, financial institutions, colleges and universities, associations, nonprofit organizations and
government agencies. ACORE serves as a thought leadership forum through which these parties work together on common
interests. ACORE co-organizes the REFF-Wall Street and REFF-West Finance Conferences, the RETECH All-Renewable Energy
Conference & Exhibition, the Phase II National Policy Forum in Washington, DC, and hosts both domestic and global policy
events furthering the mission of renewable energy. Additional information is available at www.acore.org.
This message was sent to jim@usgreenenergyinc.com by:
ACORE (info@acore.org)
1600 K Street NW, Suite 700, Washington, DC, 20006 • 202-393-0001
Subscribe • Modify Your Profile • Unsubscribe • Forward To A Friend