Companies that create and place in service renewable energy facilities
are eligible for direct payments
in lieu of tax credits from the government. The U.S. Department of Energy
and the U.S. Department of the Treasury
recently announced they're accepting applications for a program that aims to expand the development of renewable energy projects throughout the United States and to create new jobs.
The two departments estimate distributing at least $3 billion in financial support to approximately 5,000 bio-mass, solar, wind
, and other types of renewable energy production facilities, according to the U.S. Department of Energy (DOE)
. The funding for this effort is made available through the American Recovery and Reinvestment Act
"This program will play a major role in encouraging private sector capital to invest in clean energy development, creating new jobs that can't be outsourced," says DOE Secretary Steven Chu
. "It is an investment that will continue to help our economy grow and ensure advancement in clean and renewable energy development."
"As we move quickly to get our economy back on track and to repair the financial system, we must make investments that lay the foundation for a stronger economic future," adds Treasury Secretary Timothy Geithner
. "Too many renewable energy projects have stalled due to a lack of financing. The Recovery Act program will lead to investment in our long-term energy needs, move us towards energy independence, increase jobs at energy-specific businesses, and protect our environment."
The Recovery Act authorized Treasury to make direct payments to companies that create and place in service renewable energy facilities beginning Jan. 1, 2009. Previously, these companies could file for a tax credit to cover a portion of the renewable energy project's cost; under the new program, applicants would agree to forgo future tax credits in favor of an immediate reimbursement of a portion of the property expense. The Energy Department will assist Treasury in implementing this program by reviewing the technical merits of the applications.
Companies interested in applying for the program can visit https://treas1603.nrel.gov/
for more information.