Cash Grants for Commercial Solar to Be Extended

An $858 million tax bill is sitting on President Obama’s desk and is anticipated to be signed this afternoon.  I’m sure everyone has their own opinion about the tax package that was approved by the House late last night.  Some could say it had something for everyone – tax cuts for the rich, and an extension of the unemployment benefits and a reduction in the payroll tax for the middle-class.    What it has for the solar industry is a one-year extension of the Department of Treasury’s Section 1603 tax grant program (TGP) for renewable energy projects, including solar energy.

The American Recovery and Reinvestment Act, enacted in July 2009, established the Section 1603 program.  The program allows taxpayers that would be eligible for the federal business investment tax credit (ITC) to take a cash grant instead of the ITC through December 31, 2010.   The Solar Energy Industries Association (SEIA) has credited Section 1603 with prompting over 1,100 solar installations in 42 states and creating a 100% increase in investments in the solar industry in 2010.  The increased solar capacity has contributed to powering 200,000 homes and providing jobs for approximately 93,000 individuals.

The tax package that was passed by the House and Senate and awaiting the President’s signature will extend the Section 1603 cash grant program for one year.  Commercial entities that own renewable energy projects that start construction in 2009, 2010, or 2010 and are completed by the deadline (2012 for wind, 2016 for solar and fuel cell, and 2013 for all other renewables) will qualify for a cash grant equal to 30% of the project’s cost.

I’m sure the general public does not support all the measures in the soon to be passed tax bill.  I do want to point out that the inclusion of the Section 1603 tax grant program to be an enormous win for both the solar industry and the general population.  We are taking one step closer toward clean technology and one step farther away from fossil fuels.  Even in a depressed economic state, we can’t be using the same old excuses of “it’s not the right time” or “we just don’t have the money.”  With news that China has surpassed the U.S. to now be the top producer of renewable technologies, it is time for our country to act.  Let’s celebrate a clean energy win!

If you’re interested in evaluating if your business or institution is a good candidate for solar, please reach out to Brightstar Solar for a complimentary solar evaluation and analysis of your site in Massachusetts or Connecticut.  If you decide you want to move forward with a solar PV installation, our company can work with you to complete the Section 1603 application and other necessary paperwork to maximize your incentives for the project.