Stimulus Bill Creates $3.2 Billion in Tax Credits for Renewables
A new 30 percent tax credit for renewable energy is among many clean-energy provisions of the American Recovery and Reinvestment Act. President Obama signed the bill into law yesterday.
February 18, 2009
Wind, solar, storage, efficiency and transmission spaces will be able to take advantage of a new 30 percent tax credit designed to benefit manufacturers of advanced energy property. Treasury may allocate up to $2.3 billion in credits, which will be available only through a competitive bidding process.
The Act also extends deadlines for tax credit eligibility, makes the PTC and ITC more flexible, removes tax credit caps, authorizes $1.6 billion in renewable energy bonds and another $2.4 billion in energy conservation bonds to finance nonfederal government programs.
A new grant program will (finally) provide a way to monetize tax credits. Industry insiders are concerned that the uncertainty of the grants -- unannounced specifics as to their limits and timing -- will throw the brakes on projects as they fall into a "wait-and-see" mode. A quick announcement of retroactive eligibility would clear the way.
Renewable Energy World outlined nicely the provisions related to renewables, in this article.