FEDERAL INCENTIVES: American Recovery & Investment Act of 2009 U. S. Treasury Section 1603 Program
This act creates a new program through the Department of Treasury that provides grants equal to 30% of the cost of solar property placed in service during 2011, in lieu of the section 48 Investment Tax Credit (ITC). The 30% will be calculated on the same "tax basis" that would have been used to calculate any investment tax credit. The Section 48 credit applies to commercial and utility-scale projects only. Property that is not placed in service prior to 12/31/2011 qualifies for the grant program as long as construction begins prior to 12/31/2011 and is placed in service by 1/17/2017. Developers can assume that the same rules will apply to grants that would have applied to investment tax credit. So, the grants will be paid to the same person who would have claimed an investment tax credit on the project. The grants do not have to be reported as income by the recipients.
The Treasury Department will administer the solar grant program and is required to pay out each solar grant within 60 days of the receipt of each application. The solar grant is not subject to federal taxes. The same eligibility of the investment solar tax credit applies; in particular, this means that governmental and non-tax paying entities are not eligible.
US Department of Agriculture Rural Energy for America Program (REAP)
This federal program provides grants to farmers, ranchers and rural small businesses to purchase and install renewable energy systems. Farmers and Ranchers must demonstrate that they earn 50% or more of their income from agricultural operations to be eligible. The grants are awarded on a competitive basis and can be up to 25% of total eligible project costs. Grants are limited to $500,000 for renewable energy system. Solar PV systems are eligible under this program.
Visit the US Department of Agriculture's website at http://www.rurdev.usda.gov/BCP_Reap.html for more information.
RMK SOLAR continually monitors available grants, incentives, and financing options.
available grants, incentives, and financing options.
Check out this website and click on your state to get information specific to your location: www.dsireusa.org