Section 1603 of the American Recovery and Reinvestment Act provides a cash grant in lieu of ITC or PTC for renewable energy projects put into service on 2009, 2010 and 2011 or which commenced construction in 2009, 2010, or 2011. The deadline for applications is the end of this month. Needless to say “put into service” and “commenced construction” are both terms which the Treasury Department has fleshed out in respect to Section 1603 or during the course of other programs.
Here are some tips to maximize the likelihood of having a successful application and minimizing the stress of completing the paperwork:
1) Check both the actual phyiscal construction and 5% construction commencement boxes even if you are not absolutely sure you can support the claim at this time. The Treasury Department will follow up for further information if your submission is incomplete, but the Treasury Department will not let you retroactively amend your application to check both boxes.
2) The 4B Narrative Box unnecessarily scares many applicants. There are no magic words and the information included in the narrative box does not directly contribute to the success of an application. The Treasury Department can use the information to help it get a better sense for the overall project, but the primary purpose appears to be to provide the department with descriptions of successful projects for agency reports. Treasury officials have also recommended applicants include any other unique information about the project that cannot be included anywhere else.
3) You do not need a SAM account to apply (the Treasury Department has been experiencing technical glitches with SAM as they migrate to a new system) for a Section 1603 Cash Grant. You do need a SAM account to receive the grant once it is awarded.
4) If you do not receive your full award, you may choose to refuse the grant and opt for the ITC instead.
If you have questions about Section 1603 cash grant applications, contact us at 773-609-5320, firstname.lastname@example.org, or through our web contact form.
Disclaimer: This article cannot, and does not, create any attorney/client or consultant/client relationship.