Helping you benefit from the stimulus package

The American Recovery and Reinvestment Act (ARRA) of 2009, also known as the "Economic Stimulus" package provides several alternatives for improving the economics of potential wind projects. The provisions are intended to help projects become more economically viable, but sorting through the options and how best to benefit is complicated.

Is Production Tax Credit (PTC) a better decision for me than Investment Tax Credit (ITC)? Does converting an ITC to a grant provide for a better option? How does ITC impact depreciation? Is tax-equity partnership flip better that sale-leaseback?

WECC consultants can help determine what will work best for you. Using our financial assessment, we can tell you how much the cost of energy and capital investment can be reduced, as well as the impacts on income statements, cash flow statements, and taxes. If you think a wind project is not a cost-effective solution for your situation, now is the time to take a closer look.

Benefits for Commercial entities

Extension of the Production Tax Credit (PTC). A three-year extension of the PTC provides a tax credit for every kilowatt-hour generated for the first ten years of qualified renewable energy facilities.
Investment Tax Credit (ITC). Non-solar renewable energy facilities can elect to claim the 30% ITC instead of the PTC. This option can be much more rewarding for smaller wind projects where the installed costs per kilowatt is greater than $2000; although using the ITC requires a reduction in the depreciable basis of 15%.
Temporary Grant Programs. Wind facility owners also have the option to apply for a grant equal to 30% of the basis of the property, provided the property is depreciable or amortizable. This program mimics the ITC.
Bonus Depreciation. The bonus depreciation option was extended until the end of 2009, allowing a 50% depreciation of the project in the first year, in addition to the accelerated depreciation already allowed. This can further reduce the cost of energy by about 33% than with the ITC grant alone.

Benefits for Non-profits and Government entities

Qualified Energy Conservation Bonds. $2.4 billion has been allocated for Qualified Energy Conservation Bonds that can be used to finance qualified conservation purposes such as green community programs, rural development, and energy efficiency retrofits of existing public and private buildings through loans or grants to individual homeowners or businesses. Bonds are allocated to state or large local governments.
Clean Renewable Energy Bonds (CREBs). National limits on new CREBs were expanded to $1.6 billion. CREBs can be issued by municipalities and electric co-operatives, providing interest-free financing for projects generating clean energy.

Contact a WECC consultant to learn more about how you can benefit from the economic stimulus package.