Tax Incentives
Production Tax Credit (PTC) extended: the wind tax credit is extended for three years; geothermal, biomass, hydropower, landfill gas, waste-to-energy and marine facilities extended through December 31 2013.
Investment Tax Credit (ITC) available for ALL renewable energy sources: project developers for all renewables have the option of taking a 30% tax credit, which previously only applied to solar.
Repeals Subsidized Energy Financing Limitation on ITC: businesses and individuals can qualify for the ITC even if their property is financed with industrial development bonds or other subsidized energy financing.
Grant Program in Lieu of Tax Credits: Project developers have a choice: they can either take the 30% tax credit (ITC) or apply for a grant for 30% of a project's cost from the Treasury Department. Eligible projects start construction in 2009 or 2010. Grants will be issued within 60 days of the grant application or after the facility is placed in service.
Increases Credit for Alternative Fuel Pumps: Credits for installing alternative fuel pumps at gas stations increase from 30 to 50% ($30,000 to $50,000) for 2009-2010.
Advanced Energy Manufacturing Credits: Projects that re-tool or build manufacturing facilities to make components for renewable energy or advanced grid, energy storage systems for electric or hybrid cars, and equipment for carbon capture and storage can receive a 30% tax credit ($2 billion total for the program).
Credit for Plug-in Vehicles: Increases the tax credit for the first 200,000 plug-ins to $2500, plus $417 for the first 5 kWh of battery capacity, plus $417 for each additional kWh of battery capacity, up to $7,500 per vehicle. $2500 credit for neighborhood electric vehicles and a credit equal to 10% of the first $40,000 for converting a vehicle to a plug-in.
5-Year Carry-Back Provision for Operating Losses of Small Businesses: extends the carry-back period for net operating losses (NOL) from 2 to 5 years for tax years 2008 and 2009.
Extends Bonus Depreciation: temporarily extends and increases the bonus depreciation Congress enacted last year through 2009. Write offs can be applied to capital expenses between $250,000 to $800,000.
Direct Spending
Renewable Energy & Energy Efficiency: $16.8 billion over the next 10 years.
Grid Development: $4.5 billion for smart grid technology. Federal matching grants for the Smart Grid Investment Program increased from 20% to 50%.
R&D, Demonstration Projects: $2.5 billion for renewable energy and energy efficiency R&D, demonstration and deployment activities.
Federal Power Marketing Administrations: $6.5 million for capital investments in electric power transmission systems.
Advanced Batteries: $2 billion in grants for manufacturing advanced batteries and components.
Defense Energy & Efficiency Programs: $300 million to the DOD for researchand evaluation of renewable energy generation, transmission and efficiency projects. $100 million for Navy and Marine Corps for efficiency and clean energy projects.
Electric Transmission Congestion Study: The Secretary of Energy will conduct a study on the transmission issues facing renewable energy as part of the electric transmission congestion study due for release in August 2009.
Advanced vehicle Purchases: $300 million for hybrids, neighborhood electric vehicles; electric vehicles; and commercially available plug-ins.
Bond and Loan Programs
Clean Energy Renewable Bonds (CREBs): $1.6 billion for clean energy bonds that finance wind, closed-loop and open-loop biomass, geothermal, small irrigation, hydropower, landfill gas, marine renewable, and trash combustion facilities. One-third of the funding goes to state/local/tribal governments, one-third for utilities and one-third for electric cooperatives.
Renewable Energy Loan Guarantee Program: $6 billion for temporary loan guarantees for renewable energy power generation and transmission projects that begin construction by September 30, 2011.
Up to $500 million of the total can be used to develop leading edge biofuels that have been demonstrated and have commercial promise to substantially reduce greenhouse gas emissions.
