Handbook
| American Recovery and Reinvestment Act Program Guide | |||||||||
| Grants in Lieu of Tax Credits-Section 1603 Program | |||||||||
| Progress Indicator |
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| Federal Program Information | |||||||||
| Federal Program Description |
Under the Grants in Lieu of Tax Credits: Section 1603 Program, the Department of the Treasury makes payments to eligible persons who place in service specified energy property and apply for such payments. The purpose of the payment is to reimburse eligible applicants for a portion of the expense of such property. Eligible property under this program includes only property used in a trade or business or held for the production of income. By receiving payments for property under section 1603, applicants are electing to forego tax credits under Code sections 45 and 48 with respect to such property for the taxable year in which the payment is made or any subsequent taxable year. Applicants must agree to the terms and conditions applicable to the section 1603 program. The guidance establishes the procedures for applying for payments under the section 1603 program and is intended to clarify the eligibility requirements under the program. |
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| CFDA Number | n/a | ||||||||
| Assistance Type | Direct Payments with Unrestricted Use | ||||||||
| ARRA Citation | Page 250: DIVISION B Tax, Unemployment, Health, State Fiscal Relief, and Other Provisions: TITLE I Tax Provisions: Subtitle G-Other Provisions: Sec. 1603. Grants for specified energy property in lieu of tax credits. | ||||||||
| ARRA Reporting |
a. The applicant shall provide periodic reports as required by Treasury. A project performance report is required on an annual basis for a period of five years after the property was placed in service. Annual performance reports are due no later than 21 days following the end of the reporting period. The first reporting period begins on the date the property is placed in service. b. On an annual basis, the applicant must provide a project performance report including the following elements: Name of applicant Current owner of property Treasury application number Name of project Location of project: city/county, State, zip code Number of jobs retained Annual production (in kilowatt hours, MMBTUs, or horsepower as applicable) Installed nameplate capacity (in kilowatts, MMBTUs, or horsepower as applicable) c. The applicant shall submit any other reports that Treasury deems necessary to comply with American Recovery and Reinvestment Act guidance. |
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| Federal Agency | Department of Treasury | ||||||||
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| Flow of Funds |
Section 1603 authorizes the United States Department of the Treasury to make payments directly to persons who place in service specified energy property provided certain conditions are met. |
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| Federal Grant Notice(s) | |||||||||
| Status | Open | ||||||||
| Title | Payments for Specified Energy Property in Lieu of Tax Credits | ||||||||
| Eligible Entries |
a. The applicant is the owner or lessee of specified energy property that qualifies for funds under Section 1603 and is the original user of the property. b. Where the applicant is the lessee of the specified energy property, the owner of the specified energy property has agreed, in writing, to the lessee being the recipient of the Section 1603 payment and has waived, in writing, its right to receive any payment under Section 1603 as well as its right to claim a tax credit under section 45 and 48 of the Internal Revenue Code (IRC) with respect to the property. c. The applicant is not a federal, state or local government, or any political subdivision, agency or instrumentality thereof; an organization that is described in section 501(c) of the IRC and is exempt from tax under section 501(a) of the IRC; or an entity referred to in section 54(j)(4) of the IRC. d. The applicant is not a partnership or pass-thru entity that has a person described in section 2.c above as a direct or indirect partner (or other holder of an equity or profits interest) unless this person only owns an indirect interest in the applicant through a taxable C corporation. e. The applicant is not a foreign person or entity unless it is a foreign person or entity that qualifies for the exception in section 168(h)(2)(B) of the IRC. |
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| Website | http://www.treas.gov/recovery/1603.shtml | ||||||||
| Deadline | 10/01/11 | ||||||||
| Awards and Outcomes | |||||||||
| Website | http://www.recovery.gov/transparency/pages/home.aspx?State=NY | ||||||||
