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Ever since the stimulus package was passed, a lot of folks have been asking about how it will impact the solar space. After all, when it comes to renewables, it is the solar industry that has really enabled a lot of change in Washington.
So here's a quick breakdown (as provided by the Solar Energy Industries Association) on the key provisions that will benefit the solar industry:
- Renewable energy grants equal to 30 percent of the cost of solar property placed in service during 2009 and 2010.
- A repeal of the penalty for subsidized renewable energy financing. Basically allows businesses and individuals to qualify for the full amount of the solar tax credit, even if the projects receive subsidized energy financing.
- A renewable energy loan guarantee program that appropriates $6 billion to pay the credit subsidy costs, which is expected to support $60 billion worth of loan guarantees. These projects must begin construction by September, 2011.
- A renewable energy manufacturing investment credit that provides up to $2.3 billion to fund a 30 percent investment tax credit for manufacturing assets used to manufacture advanced energy property. These projects, however, must be certified by the Treasury, in consultation with the Secretary of Energy.
- A provision to remove the $2,000 cap on solar water heating property. Now it's a full 30 percent credit...period.
- In 2008, Congress temporarily increased the amount that small businesses could write off for capital expenditures incurred in 2008 to $250,000, and increased the phase-out threshold for 2008 to $800,000. Under the stimulus bill, these temporary increases will be extended for capital expenditures incurred in 2009. And until the end of 2010, small business taxpayers are allowed to write off up to $125,000 of capital expenditures subject to phase-out once capital expenditures exceed $500,000.
- The appropriation of $16.8 billion to the DOE's Office of Energy Efficiency and Renewable Energy, including $2.5 billion for applied research, development, demonstration, and deployment projects.
- The appropriation of $125 million to the Bureau of Land Management to be used for renewable energy rights-of-way and related permitting projects.
- $1.6 billion for new clean renewable energy bonds to finance facilities that generate electricity from renewable energy sources.
- The extension of the maximum carryback period for net operating losses from two years to five years for tax years 2008 and 2009.
- The authorization of an additional $2.4 billion in bonds to finance state, municipal and tribal government programs to reduce greenhouse gas emissions.
- Western Area Power and Bonneville Power will now be able to borrow up to $3.25 billion each to construct or finance transmission lines.
- The appropriation of $53.6 billion to a state fiscal stabilization fund. The provision specifies that states use 18.2 percent of this money for public safety and other government services, including the renovation of facilities and schools to meet green building standards.
- The appropriation of $500 million to fund job training programs in energy efficiency and renewable energy.
- A 50 percent reimbursement to smart grid demonstration projects in urban, suburban, tribal, and rural areas, including areas where electric system assets are controlled by nonprofit entities or investor owned utilities. This provision also provides a 30 percent tax credit for property designed to produce energy conservation technologies.
- The appropriation of $300 million for DOD research, development, testing and evaluation of projects to improve energy generation, transmission, and energy efficiency. Also appropriates an additional $100 million for Navy and Marine Corps facilities, and further specifies that funds are for energy efficiency and alternative energy projects.
- $6 billion for the State and Tribal Assistance Grants account - $4 billion for the Clean Water State Revolving Funds and $2 billion for the Drinking Water State Revolving Funds. In an effort to ensure that the funds are used immediately to create jobs, the money must be committed to projects under contract or construction within 12 months of the date of enactment.
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