A U.S. House-Senate conference committee may remove a provision in present law that requires the Department of Defense (DOD) to buy electricity solely from its local distribution company. The...
A renewable incentive expires with the Treasury grant program.
applicants should submit a copy of the binding written contract and a statement from the contractor, signed under penalties of perjury, describing the work that has commenced and certifying that the work commenced pursuant to the binding written contract.
For projects relying on the 5-percent safe harbor, applicants must submit a statement from an authorized representative of the applicant signed under penalties of perjury, or for projects with an estimated eligible cost basis of $1 million or more, from an independent accountant, attesting to the method of accounting used by the applicant for federal tax purposes ( e.g., cash or accrual). Applicants using the cash method of accounting must provide a statement that outlines the amount paid before the end of 2010; a detailed description of the costs that have been paid; and an estimate of the total cost of the specified energy property. Applicants also must include evidence of payment such as invoices or other financial records.
Applicants using the accrual method of accounting must provide a statement that illustrates the amount that has been incurred before the end of 2010; a detailed description of the costs incurred; and an estimate of the total cost of the specified energy property. Likewise, they must include evidence of the costs incurred such as invoices or other financial records. If an applicant is relying on costs paid or incurred by a contractor, it must include a copy of the binding written contract and a statement from the contractor, signed under penalty of perjury, of costs paid or incurred and allocated to applicant’s project.
Next Steps for Utilities
The projects that utilities have undertaken to date under the Treasury grant program have been extraordinarily successful and have brought green generation technology to many populous areas. Utility companies must be proactive in securing funding before the Treasury grant program window expires, whether they own their facilities or are buying power from a third party. It’s still possible to reach the 5-percent safe harbor or to begin physical work of a significant nature in advance of the Dec. 31, 2010 deadline. Whether Congress will extend the deadline remains uncertain, so developers and utilities must act quickly to qualify for desired cash grants.