Good news for our friends looking to develop commercial solar projects.  As you may remember due to  concerns over the declining tax appetite of companies across the country, Congress created a program in the stimulus bill to allow solar developers to temporarily have access to grants equal to 30 percent of the cost of commercial solar property, in lieu of claiming the commercial investment tax credit.

The Department of Treasury just released guidance for applying for the grant program today.  Click here for the Treasury guidance document. Click here to view the sample application. Note that the actual application has not been released, and the Treasury is not accepting applications quite yet.

To qualify for a grant the commercial solar property must be placed in service during 2009 and 2010.  Solar property that is placed in service after December 31, 2010 and before January 1, 2017 can qualify for the grant program as long as construction commences prior to January 1, 2011. The deadline to apply for a grant is October 1, 2011. The grant program will be funded up to roughly $3 billion.

The Solar Energy Industries Association is hosting a webinar on this topic on  July 13, 1pm ET. To Join click here.

Presented by:
Laura Ellen Jones
Tax Partner, Hunton & Williams LLP
Chair, SEIA Solar Services and Consumers Division

David S. Lowman, Jr.
Tax Partner, Hunton & Williams LLP
Co-Chair, SEIA Tax Working Group

Keith Martin
Tax Partner, Chadbourne & Parke LLP
Author, SEIA Solar Tax Manual

This webinar will provide a detailed explanation of the guidance issued regarding the Treasury Grant program enacted by the American Reinvestment & Recovery Act of 2009, including the process to apply for the grant; substantive issues addressed in the guidance; and the issues that still remain open with respect to the program.