Treasury Releases Guidance on Grant Payments for Specified Renewable Energy Property in Lieu of Tax Credits

On July 9, 2009, the Office of the Fiscal Assistant Secretary of the United States Treasury Department released guidance (Guidance) on the implementation of Section 1603 of the American Recovery and Reinvestment Act (ARRA), which authorizes the Treasury to make cash payments to eligible persons who place in service specified renewable energy property by a certain credit termination date. Although the Treasury is not expected to accept applications for Section 1603 payments before August 1, 2009, the Guidance provides important insights on the application process, preparation of the application package, and how the relationships of various players in a renewable energy project should be structured to fully take advantage of the payment program.

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