On July 31, 2009, the US Treasury Department (Treasury) announced that it is now accepting applications for grants in lieu of tax credits (Grants) under section 1603 of the American Recovery and Reinvestment Act of 2009. Section 1603 established a program whereby an eligible person could, in lieu of claiming the production tax credit under Internal Revenue Code Section 45 or the investment tax credit under Internal Revenue Code Section 48, apply to Treasury for a Grant with respect to certain renewable energy property to provide a reimbursement for a portion of the costs of such property. Treasury’s section 1603 web site, http://www.treasury.gov/recovery/1603.shtml, contains a link to the National Renewable Energy Laboratory’s web site where applicants can register and submit online applications: https://treas1603.nrel.gov/.
Treasury also provided the procedures and documentation by which an accountant is required to attest to the accuracy of costs claimed in the amount of $500,000 or more. Applicants requesting payments of $1 million or more for a specified property are required to submit an independent accountant’s certification attesting to the accuracy of all costs claimed as part of the basis of the property. A form of the certification is available on Treasury’s section 1603 web site. Applicants requesting less than $1 million, and whose eligible basis is more than $500,000, are required to submit an independent accountant’s report attesting that certain procedures were followed in evaluating the basis of the property. The procedures, to which the applicant must agree, are available on Treasury’s section 1603 web site.
In addition, Treasury provided the rules and documentation for assigning Grant payments to financial institutions, as well as a form notice of assignment. Finally, Treasury reminded applicants that prior to any payment being made, applicants must register with the Central Contractor Registration at the following web site: www.ccr.gov/startregistration.aspx.
For more information on the Grants program, please see our Client Update, “US Treasury Department Issues Guidance on Energy Grants In Lieu of Tax Credits,” available at: https://www.mayerbrown.com/broker.asp?id=7230&nid=0
If you have any questions about the Grants or need specific advice on the application procedure, please contact either of the attorneys listed below or your regular Mayer Brown contact Jeffrey G. Davis at +1 202 263 3390.