- US Tax Bill Extends Cash Grant for Certain Renewable Energy Projects
- December 21, 2010 | Authors: Patricia G. Hammes; Mitchell E. Menaker; Howard M. Steinberg
- Law Firm: Shearman & Sterling LLP - New York Office
The House of Representatives yesterday passed the Senate Tax Bill, which is headed towards the President’s desk for signature. Among numerous other provisions, including a two year extension of the Bush era tax rates, the Bill extends for 2011 the Section 1603 30% cash grant for certain renewable energy projects. The Section 1603 grant was extremely popular, with $5.5 billion paid with respect to $l8.5 billion of renewable projects through November 8, 2010.
Additionally, the Bill provides bonus depreciation of 100% for investments placed in service after September 8, 2010 through December 31, 2011 and 50% for 2012.
The Joint Committee on Taxation projects the extension of the Section 1603 grant to cost $2.99 billion, which translates into approximately $10 billion of additional renewable energy projects.