Go Green, Get Some Green Back: US Stimulus Program Rewards Businesses That Complete a Renewable Energy Project by Dec 31
What do a cranberry farm, a dog kennel, a pizza restaurant, a car wash, a piano workshop and a bunch of wind farm developers have in common? They've all received stimulus checks from the US government for renewable energy projects they've installed―solar and wind energy, mostly.
Just about any business owner in the US can do the same, as long as you meet the program requirements. Don't wait, though! You can apply for a grant until October 1, 2011, but you'll need to complete your clean energy project by December 31, 2010 to be eligible.
What is it?
When Congress passed the American Recovery and Reinvestment Act of 2009, they set a big chunk of money aside for renewable energy projects. The program we're talking about is called "Payments for Specified Energy Property in Lieu of Tax Credits." Fortunately, it has a shorter name: the 1603 Program. That's because it's section 1603 of the stimulus bill.
Some people might think the money's all gone, or that only big businesses can benefit. Wrong on both counts! When you read the Treasury Department list of grant recipients, you'll see multimillion-dollar payments to big companies, like wind farms. But sandwiched in between are much smaller awards to motels, animal hospitals, gas stations and apartment complexes, to name just a few.
How can I get hold of some that money?
Interested? Here are some key points to keep in mind. Refer to the US Treasury site (look for the link at the end of this article) for the exact details, plus you'll want to talk things over with your tax advisor.
- You can apply for a grant until October 1, 2011, but you'll need to complete your clean energy project by December 31, 2010 to be eligible.
- This program is for businesses, not homeowners. Homeowners can get a 30 percent federal tax credit for installing solar systems, though, and so can businesses.
- The 1603 Program pays businesses directly. You'll get a check in the mail, as opposed to a tax credit. However, a business that receives a 1603 Program award can't get a tax credit for the same project.
- You can apply for the program online. Don't be intimidated by the Treasury Department rules. If you run a small business, you've probably dealt with worse paperwork! The company you hire to install your clean energy project may be able to assist you with the application process.
If an alpaca ranch in Georgia can get $5831 for installing solar energy panels, what's stopping you?
Next steps
- Get all the facts at the Payments for Specified Energy Property in Lieu of Tax Credits page at the US Treasury website. You'll find application guidelines, FAQs and a list of grant recipients.
- Talk to local alternative energy vendors and ask them specifically about the 1603 program. You don't have much time, though – the project has to be finished by the end of 2010!