[RE-wrenches] Stimulus Package & Solar Thermal

[August Goers]

David -

This good news is what I was forwarded from CALSEIA: -August

***


CALSEIA Members,

Below are the provisions affecting the solar industry from the executive
summary of HR 1, The American Recovery and Reinvestment Act.

There's much to do to analyze the details of each of the provisions, how
they are implemented, and how they will translate into the marketplace.

But one thing appears certain: SEIA has definitely accomplished a lot in a
short amount of time and everyone in the solar industry should take a moment
to say thanks to the SEIA staff for their hard work and remarkable results.

Renewable Energy Grants
* Creates a new program through the Department of Treasury that provides
grants equal to 30 percent of the cost of solar property placed in service
during 2009 and 2010, in lieu of the section 48 investment tax credit. (Div.
B, Sec. 1104, p. 38) Property that is not placed in service prior to
December 31st, 2010 qualifies for the grant program as long as construction
begins prior to December 31st, 2010 and is placed in service by January 1,
2017. Applications must be filed by October 1, 2011. (Div. B, Sec. 1603, p.
153) Key details such as what constitutes an application and “begins
construction” will be defined in the near future by the Treasury
Department.

Repeals Penalty for Subsidized Renewable Energy Financing
* Allows businesses and individuals to qualify for the full amount of the
solar tax credit, even if projects receive subsidized energy financing (e.g.
below market loans, tax preferred bonds, state grants etc.). This amendment
shall apply to periods after Dec. 31, 2008. (Div. B, Sec. 1103, p.36)

Renewable Energy Loan Guarantee Program
* Establishes a temporary DOE loan guarantee program for renewable energy
projects, renewable energy manufacturing facilities and electric power
transmission projects. Appropriates $6 billion to pay the credit subsidy
costs, which should support $60 billion worth of loan guarantees. Eligible
renewable projects are those that generate electricity or thermal energy and
facilities that manufacture related components. Projects must commence
construction by September 30, 2011. Davis‐Bacon wage requirements
(prevailing federal wage) apply to any project receiving a loan guarantee.
(Div. A, p. 63 & p. 77)

Renewable Energy Manufacturing Investment Credit
* Provides up to $2.3 billion to fund 30 percent investment tax credit for
manufacturing assets used to manufacture of advanced energy property.
Projects must be certified by the Treasury, in consultation with the
Secretary of Energy, through a competitive application process. Effective
upon enactment. (Div., B, Sec. 48 C, p. 102)

Remove Limits on Solar Water Heating
* Section 25D provides a personal tax credit for the purchase of qualified
solar water heating property that is used for a purpose other than heating
swimming pools and hot tubs. The 30 percent ITC has a monetary cap of
$2,000. This provision removes the $2,000 cap, providing a full 30 percent
credit for qualified solar water heating property. The credit may be claimed
against the alternative minimum tax. (Div. B, Sec. 1122(a), p. 46)

Extend Bonus Depreciation
* Last year, Congress temporarily increased the amount (50% of the cost of
capital investment) that small businesses could write‐off for capital
expenditures incurred in 2008 to $250,000 and increased the phase‐out
threshold for 2008 to $800,000. The bill would extend these temporary
increases for capital expenditures incurred in 2009. Accordingly, until the
end of 2010, small business taxpayers are allowed to write‐off up to
$125,000 (indexed for inflation) of capital expenditures subject to a phase
‐out once capital expenditures exceed $500,000 (indexed for inflation).
(Div. B, Sec 1202, p. 74)

Solar on Federal Property
* Appropriates $5.5. billion to be deposited into the Federal Buildings Fund
for expenditures to construct, repair and make alterations on federal
buildings to increase energy efficiency, including installing solar energy
equipment. $4.5 billion shall be available for measures necessary to convert
GSA facilities to high‐performance green buildings. (Div. A, Title V,
General Services Administration, p. 88)
* Appropriates $1 billion for non‐recurring maintenance on Veterans Affairs
facilities, including energy projects. (Div. A, p. 213)
* GSA estimates that 75% of the anticipated projects will include a solar
component.

Department of Energy Funding
* Appropriates $16.8 billion to DOE’s Office of Energy Efficiency and
Renewable Energy, including $2.5 billion for applied research, development,
demonstration, and deployment projects. (Div. A, p. 59 and Joint Statement
A, p. 24) The total amount includes specific appropriations for the
following:
- Conservation block grants $3.2 billion
- Weatherization $5.0 billion
-  State Programs $3.1 billion; click here to see state allocations: State
Energy Program Allocations (2.13.09)
-  Batteries $2.0 billion

Department of Interior Funding
* Appropriates $125 million to BLM for the management of lands and resources
and suggests funds be used for renewable energy rights‐of‐way and related
permitting projects. (Div. A, Title IVV Interior, p. 133)

New Clean Renewable Energy Bonds (“New CREBs”)
* Provides an additional $1.6 billion for new clean renewable energy bonds
to finance facilities that generate electricity from renewable energy
sources including solar facilities. (Div. B, Sec. 1111, p. 39)

5 Year Carryback of Net Operating Losses
* For tax years 2008 and 2009, extends the maximum carryback period for net
operating losses from two years to five years. Eligible small business may
elect to increase the carryback period for an applicable 2008 NOL from two
years to any whole number of years elected by the taxpayer that is more than
two and less than six. An eligible small business is a taxpayer meeting a
$15,000,000 gross receipts test. (see Sec. 448(c)) An applicable NOL is the
taxpayer's NOL for any taxable year ending in 2008, or if elected by the
taxpayer, the NOL for any taxable year beginning in 2008. However, any
election under this provision may be made only with respect to one taxable
year. (Div., B. Sec. 1211, p. 74)

Qualified Energy Conservation Bonds
* Authorizes an additional $2.4 billion, up from $800 million, in bonds to
finance State, municipal and tribal government programs to reduce greenhouse
gas emissions. These bonds can be used by government agencies to reduce
energy consumption in publicly‐owned buildings by at least 20 percent,
implement green community programs, or develop electricity from renewable
energy resources. Demonstration projects that reduce peak electrical use
also qualify. Public education campaigns to promote energy efficiency can
also be funded. (Div B, Sec. 1112, Page 40)

Electric Transmission Infrastructure
* Allows Western Area Power and Bonneville Power Administrations to borrow
funds (up to $3.25 billion each) to construct or finance transmission lines.
(Div. A, Sec. 408, p. 65) Directs the DOE to include analysis of renewable
energy sources, including solar, in its 2009 National Electric Transmission
Congestion Study. (Div. A, Sec. 408, p. 80)

Solar for Schools
* Appropriates $53.6 billion to a state fiscal stabilization fund. Specifies
that states shall use 18.2% of this money for public safety and other
government services, including the renovation of facilities and schools to
meet green building standards. Solar energy projects qualify. (Div. A, Sec.
14001‐14002, pp. 425‐429)

Green Collar Jobs
* Appropriates $500 million to fund job training programs in energy
efficiency and renewable energy. (Div. A, Title VIII, p. 148) Also
appropriates $250 million for rehabilitation and construction projects on
Job Corps Centers, including energy efficiency and renewable energy
projects. (Div. A, Title VIII, p. 150)

Smart Grid
* The legislation provides up to 50% reimbursement to smart grid
demonstration projects in urban, suburban, tribal, and rural areas,
including areas where electric system assets are controlled by nonprofit
entities or investor owned utilities. The Secretary of Energy is also
required to maintain a smart grid information clearinghouse. As a condition
of qualification, demonstration projects are required to use open protocols
and standards. (Div. A, Section 405, p. 72)
* The legislation provides a 30% tax credit for property designed to produce
energy conservation technologies (including energy‐conserving lighting
technologies and smart grid technologies) (Div. B, Section 48C, Page 10)

Solar for the Military
* Appropriates $300 million for DOD research, development, testing and
evaluation of projects to improve energy generation, transmission, and
energy efficiency. (Div. A, Title X, p. 48)
* Appropriates an additional $100 million for Navy and Marine Corps
facilities, and further specifies that funds are for energy efficiency and
alternative energy projects. (Div. A, Title X, p. 196)
Remedy for AMT and R&D Credits in Lieu of Bonus Depreciation
* Where a taxpayer is in a loss position, deductions in excess of income are
unable to enjoy the benefit of bonus depreciation. This provision extends
the allowance in the Foreclosure Prevention Act of 2008 that permits AMT and
loss taxpayers to receive 20% of the value of their old AMT or R&D credits
to the extent such taxpayers invest in assets that qualify for bonus
depreciation. The amount is capped at the lesser of 6% of outstanding and
unused AMT and R&D credits or $30 million. The extension of the additional
first‐year depreciation deduction is generally effective for property
placed in service after December 31, 2008. The extension of the election to
accelerate AMT and research credits in lieu of bonus depreciation is
effective for taxable years ending after December 31, 2008. (Div. B, Sec
1201(b), p. 71)

Solar Water Treatment Plants:
* Provides $6 billion for the State and Tribal Assistance Grants account ($4
billion for the Clean Water State Revolving Funds and $2 billion for the
Drinking Water State Revolving Funds). To ensure that the funds are used
immediately to create jobs, the money must be committed to projects under
contract or construction within 12 months of the date of enactment.
* The bill requires that not less than 20 percent of each Revolving Fund be
available for projects to address green infrastructure, water and/or energy
efficiency, or other environmentally innovative technologies. The bill
allows States to use less than 20 percent for these types of projects only
if the States lack sufficient applications. (Div A, Title VII, p. 137)




-----Original Message-----
From: re-wrenches-bounces at lists.re-wrenches.org
[mailto:re-wrenches-bounces at lists.re-wrenches.org] On Behalf Of David
Palumbo
Sent: Monday, February 16, 2009 8:07 AM
To: RE-wrenches
Subject: Re: [RE-wrenches] Stimulus Package & Solar Thermal

Wrenches,

One of my guys attended a Shucco Solar Thermal training late last week in
CT. Word (rumor?) was going around that the $2,000 cap on the 30% ITC was
being dropped for solar thermal, as it had previously been dropped for PV
last fall for 2009 systems.

Can anybody confirm, or deny, this?

David Palumbo
Independent Power, LLC
462 Solar Way Drive
Hyde Park, VT 05655
NABCEP Certified PV Installer
www.independentpowerllc.com <http://www.independentpowerllc.com/>
802-888-7194




_______________________________________________
List sponsored by Home Power magazine

List Address: RE-wrenches at lists.re-wrenches.org

Options & settings:
http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org

List-Archive:
http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org

List rules & etiquette:
www.re-wrenches.org/etiquette.htm

Check out participant bios:
www.members.re-wrenches.org