The Department of the Treasury, along with the Department of Energy, yesterday announced that they had surpassed $1 billion in grants for renewable energy investments under Section 1603 of the Recovery Act.
The Recovery Act of 2009 expanded the investment tax credit allowed for certain types of investment in renewable energy under Section 48 of the Internal Revenue Code. In general, that program gives entities that invest in qualified renewable energy projects a tax credit equal to 30% of the qualified investment.
Section 1603 of the Recovery Act allows investors who are eligible to receive the investment tax credit to “monetize’ that tax credit through a direct cash grant from Treasury. Under the Recovery Act, the grant is required to be made within 60 days from receipt of a qualifying application, but officials have been quick to point out that all of the grants issued so far have been issued in fewer than 60 days.