Production Tax Credits for Renewable Energy
Created under Section 1603 of the Recovery Act, the Grants in lieu of Tax Credits for Renewable Energy program or Production Tax Credits provides cash assistance to energy producers in place of tax credits. The payments improve project viability, enabling companies to create and retain jobs, and establish sufficient financing bases for projects that may otherwise not be possible, dramatically expanding and accelerating the development of renewable energy projects throughout the country. Under this program, the federal government provides a cash payment in lieu of a tax credit totaling 30 percent of the qualifying cost of the project; for each federal dollar spent in payments, more than two dollars are spent in private sector investments. The 1603 program is having an immediate effect on the renewable energy industry by significantly increasing the availability and liquidity of project capital in three ways:
- Recycling grants into new projects. Project developers are able to begin construction of additional projects thanks to the extra capital from the grants they are receiving.
- Increasing the flow of capital. By reversing the drop in availability of equity investment available, the 1603 program brings significant private capital off the sidelines to finance more renewables projects.
- Attracting investment for domestic projects. Large project developers allocate capital across many countries, and the 1603 program is attracting billions of dollars of additional capital toward projects in the US.
Said Secretary Chu: “These investments are crucial to ensuring America can compete and win in the race for the clean energy jobs of the future. With American workers and American innovation, we can and must lead the world when it comes to the new Industrial Revolution in clean energy.”
For more information please see EERE points of contact by energy market (contact information is below):
•General Information:
EERE Information Center:
http://www1.eere.energy.gov/informationcenter
1-877-EERE-INF / (1-877-337-3463)
•Biomass and Biorefinery Systems:
Shab Fardanesh, 202-586-7011
shabnam.fardanesh@ee.doe.gov
•Building Technologies:
Bryan Berringer, 202-586-0371
bryan.berringer@ee.doe.gov
•Facilities and Infrastructure:
Greg Collette, #303-275-4734
greg.collette@go.doe.gov
•Federal Energy Management Program:
Brad Gustafson, 202-586-5865
brad.gustafson@ee.doe.gov
•Geothermal Technology:
Lauren Boyd, 202-287-1854
lauren.boyd@ee.doe.gov
•Hydrogen Technology:
Sara Dillich, 202-586-7925
sara.dillich@ee.doe.gov
•Hydropower:
Alejandro Moreno, 202-586-8171
alejandro.moreno@ee.doe.gov
•Industrial Technologies:
Jim Quinn, 202-586-5725
james.quinn@ee.doe.gov
•Solar Energy:
Tom Kimbis, 202-586-7055
tom.kimbis@hq.doe.gov
•Vehicle Technologies:
William Key, 202-586-3157
william.key@ee.doe.gov
•Weatherization and Intergovernmental Activities:
–Ronald Shaw, 202-586-6593, ronald.shaw@hq.doe.gov (for Weatherization)
–Mark Bailey, 202-586-9424, mark.bailey@hq.doe.gov (Block Grants, State Energy Programs, and Appliance Rebates)
•Wind Energy:
Jim Ahlgrimm, 202-586-9806
jim.ahlgrimm@ee.doe.gov
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