Renewable Energy Provisions in Stimulus Act

Renewable Energy Update
February 17, 2009

The Stimulus Bill (H.R. 1) contains several important energy tax provisions, including: (1) extending the placement-in-service deadline for certain energy sources under section 45 (open-loop biomass, closed-loop biomass, geothermal, landfill gas, trash, qualified hydropower and marine and hydrokinetic) to December 31, 2013; (2) extending the placement-in-service deadline for wind under section 45 to December 31, 2012; (3) allowing owners of new renewable energy facilities to claim an upfront 30% investment tax credit under Section 48 instead of claiming the production tax credit under section 45 over 10 years; (4) allowing owners of new renewable energy facilities to elect a tax-free cash grant instead of claiming the investment tax credit; (5) repealing the phase-out of the investment tax credit for tax-exempt bond and subsidized energy financing; and (6) extending 50% “bonus depreciation” for projects placed in service in 2009.

Non-tax provisions include a loan guarantee program for renewable energy projects that is estimated to allow the Department of Energy to guarantee up to $60 billion in new loans.

This Update summarizes the provisions of the Act of most interest to developers of, and investors in, renewable energy projects.

RYP Renewable Energy Update (FINAL Feb 2009).pdf