renewable project guidance revised

31 March 2010-- A requirement that new renewable energy projects needed to have begun construction to qualify for cash grants in lieu of tax credits is being revised by the Department of Treasury. The department now says that off-site work, developers hired under contract and certain costs accrued can all be considered to help a project qualify before the December 31, 2010 in-service deadline.

The revision allows certain costs incurred by a manufacturer or contractor to be taken into account, but the property must be manufactured or built for the applicant by another person under a written contract. In addition, the contract must be entered into before the property is manufactured or constructed.

The revised guidance also says that off-site work may be taken into consideration to demonstrate that physical work of a significant nature has begun, such as manufacturing parts of a wind turbine off site to be assembled on site. It also says that if a manufacturer produces components for multiple facilities, then reasonable methods must be used to associate individual components with particular facilities.

If a property uses both self-constructed components and components constructed by someone other than a contracted developer, the costs of both are combined to help reach the 5 percent threshold.

The current guidance says that if a project qualifies for a Treasury grant, it must be placed in service in 2009 or 2010. There is also a stipulation that if construction on the project begins in 2009 or 2010, it must be complete by 2012 for wind projects, 2013 for biomass, geothermal and other resources, and 2016 for solar.

The current guidance says construction on a project begins when "physical work of a significant nature begins," but it also says an applicant can treat construction as beginning when the applicant pays or incurs more than 5 percent of the total cost of the property. However, economic performance requirements must be met for a cost to be treated as paid or incurred, but an applicant on the accumulation method of accounting would not have incurred a cost until the property was provided to the applicant.

Read more renewable energy news

Sponsored by FLSmidth
Recommend this article Recommend this article () You recommended this article You recommended this article ()
Follow Power Engineering on Twitter

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover

Buyers Guide Company Listings

superwind GmbH

German manufacturer of micro wind turbines for professional applications like aids to navigation, monitoring systems, telecommunication. Suitable for extreme climate.
Power range 0.3 kW to 3.0 kW.

Aguidrovert Solar SL - Energia Termica Fotovoltaica Y Biomasa

Supplies solar thermal, photovoltaics, biomass, geothermal, wind and other energy renewal products (panels, collectors, boilers, stoves, water tanks, exchangers, pumping units, heatsinks, expansion vessels, batteries, inverters, regulators, windmills and absortion

Solectria Renewables LLC

Solectria Renewables is a leading grid-tied PV inverter, string combiner and web-based monitoring manufacturer for residential, commercial and utility-scale solar projects. Offer 1kW through multi-MW inverters.

TransPacific Energy Inc

Count on TransPacific Energy efficient waste heat recovery for power generation using its propriety technology. Applications include solar, geothermal energy, warm ocean waters. We deliver innovative solutions for a greener world.

Power Industry Wire News

Freedom Energy Holdings Inc. Presents ELAS Prototype Demonstration for Engineering Execs; Michigan Government Officials

Freedom Energy Holdings Inc. Presents ELAS Prototype Demonstration for Engineering Exec...

FuelQuest Announces GRAIL 2014 Conference Speakers

FuelQuest Announces GRAIL 2014 Conference Speakers

Vista Partners Updates Coverage on Power Solutions International, Inc. (NASDAQ: PSIX); Price Target Raised to $110.00

Vista Partners Updates Coverage on Power Solutions International, Inc. (NASDAQ: PSIX); ...

Ultra Electronics USSI and Liquid Robotics Announce the Development of Long Duration, Maritime Security Solution

Ultra Electronics USSI and Liquid Robotics Announce the Development of Long Duration, M...

Ceres Police Department Selects Zero Motorcycles as Their Electric Motorcycle of Choice

Ceres Police Department Selects Zero Motorcycles as Their Electric Motorcycle of Choice

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>