US Treasury Revises Cash Grant Program Guidance

Originally published March 17, 2010

Keywords: US Treasury, revised guidance, cash grant program, renewable energy property, production tax credit, investment tax credit, internal revenue code, section 48

On March 15, 2010, the US Department of the Treasury (Treasury) released revised guidance regarding when construction is deemed to have begun for purposes of the cash grant program for renewable energy projects.

Background. The cash grant program was enacted by Section 1603 of the American Recovery and Reinvestment Act of 2009. The program allows an eligible person to apply to Treasury for a grant with respect to certain renewable energy property in lieu of claiming the production tax credit under Internal Revenue Code Section 45 or the investment tax credit under Internal Revenue Code Section 48. In order for renewable energy property to qualify for a grant under Section 1603, either it must be placed in service in 2009 or 2010 or construction must have begun by