Overview of the Treasury Grant (ARRA: Section 1603 Grant in Lieu of ITC)
Section 1603 appropriates funds for payments to persons who place in service specified energy property during 2009, 2010 or 2011, or after 2011 if construction began on the property during 2009, 2010 or 2011 and the property is placed in service by a certain date known as the credit termination date. Credit termination dates vary by technology.
The grant provides for payments to qualified applicants in the amounts of 10 or 30 percent of eligible basis of property, depending on property type. Attestation of the accuracy of all costs claimed as part of the basis property is required. The guidance states that approved payments will be made within sixty days from the date of completed application.
Eligible renewable energy property under this program includes only property used to generate electricity in a trade or business or held for the production of income. Many renewable energy property types are included in the eligible properties. These properties include: wind, solar, biomass, biogas, and geothermal, to name a few.
Baker Tilly’s available related services
Our renewable energy professionals possess in-depth knowledge of government programs and can assist you with interpreting Section 1603, providing important insights on eligible costs and the application process as well as the required third party CPA attestation.
|Sample of services available||Fee range|
|1. Project review optimizing eligible costs to maximize potential grant award||$1,000 - $5,000|
|2. Safe Harbor agreed upon procedure reporting (for projects w/ eligible basis >$1MM||$1,000 - $3,000|
|3. Placed-In-Service attestation (for projects with eligible basis >$500k)|
3 a. Agreed Upon Procedure report for anticipated grants <$1MM
|$1,000 - $6,000|
3 b. Examination for anticipated grants =>$1MM
|$1,000 - $9,000|
|4. Cost segregation study (encouraged as support for application)||$1,000 - $12,000|
|5. Application filing||Included|
|*Total||$5,000 - $35,000|