Specified 1603 Energy Grant Applications Due Sept. 30, 2012

Taxpayers planning to claim Section 1603 cash grants in lieu of the Section 45 production credit or Section 48 investment credit for certain alternative energy property must file an application no later than Sept. 30, 2012, whether or not the property has been placed in service. No extension or other relief for late filing is expected to be available.

Section 1603 of the American Recovery and Reinvestment Act of 2009 (ARRA), as amended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, allows production investment tax credits for placing specified alternative energy property in service to be claimed as a cash grant, rather than as nonrefundable general business credits. This provides an incentive to place such property in service without regard to the profitability of the entity placing the property in service or the level of participation by the investor.