Jan 2009 - Economic Stimulus Bill Passes Congress, Containing Several Provisions Benefitting Small Wind.
Today the President signed into law the economic stimulus bill that includes a provision to uncap the federal small wind turbine Investment Tax Credit (ITC) originally passed last October. The removal of the cost caps on the small-wind ITC, the industry’s top legislative priority, will provide consumers with a true 30% tax credit for the purchase and installation of small wind turbines with rated capacities of 100 kilowatts or less. For a summary of the previous federal small-wind ITC passed in October, see www.awea.org/legislative/#SW.
The $787 billion stimulus bill contains a number of other provisions potentially benefitting small wind, such as:
- The option to receive a cash grant through the US Treasury in lieu of the ITC. Taxpayers that are eligible for an investment tax credit can receive an equivalent financial grant from the Department of Treasury instead of claiming the credit.
- An expansion of the Clean Renewable Energy Bond (CREB) program by $1.6 billion to finance facilities that generate electricity from a number of renewable resources, including wind.
- Expanded research and development funding of $1.25 billion through the Department of Energy’s Energy Efficiency and Renewable Energy program.
- Workforce training for renewable energy and energy efficiency careers.
- A new loan guarantee program through the Department of Energy for “commercial” and “innovative” technologies related to generation, transmission, and manufacturing of certain energy equipment.
- Repeal of subsidized energy financing limitation on the ITC. Under current law, the amount of the investment tax credit must be reduced if the property qualifying for the investment tax credit is also financed with industrial development bonds or through any other Federal, state, or local subsidized financing program. The bill repeals this subsidized energy financing limitation on the investment tax credit in order to allow businesses and individuals to qualify for the full amount of the investment tax credit even if such property is financed with industrial development bonds, or through any other subsidized energy financing.
- A new competitive 30% manufacturing credit for investment in qualifying property used to “re-equip, expand, or establish” a manufacturing facility used to produce certain renewable energy equipment.
- Extension of bonus depreciation for businesses. Last year, Congress temporarily allowed businesses to recover the costs of capital expenditures made in 2008 faster than the ordinary depreciation schedule would allow by permitting these businesses to immediately write off fifty percent of the cost of depreciable property (e.g., equipment, tractors, wind turbines, solar panels, and computers) acquired in 2008 for use in the United States. The bill extends this temporary benefit for capital expenditures incurred in 2009.
- Five-year carryback of net operating losses for small businesses.
Further summary of these and other provisions will be available to AWEA members shortly. Thanks to AWEA Legislative staff Aaron Severn and Tom Vinson for their work in preparing these and forthcoming legislative summaries.
The annual AWEA small wind survey is also now fixed to include a field to submit feedback to AWEA. To respond, visit http://www.surveymonkey.com/s.aspx?sm=5uuCgIAgzclMt6r_2bB1JUhg_3d_3d
Small Wind events calendar
For a comprehensive list of small-wind events around the country, see the Department of Energy’s Wind Powering America site at: http://www.eere.energy.gov/windandhydro/windpoweringamerica/calendar.asp
Ron Stimmel
Small-Wind Advocate
American Wind Energy Association
1501 M St. Nw, 10th Floor
Washington, D.C. 20005
Ph: (202) 383-2546
Wow good stuff, thanks for the good read.