Cash Grant Extension and 100% Bonus Depreciation to Drive Renewable Energy Project Finance in 2011
By Fred Greguras (Palo Alto) and Charles Purcell (Seattle).
The Section 1603 cash grant program was extended through December 31, 2011 as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 which was signed into law on December 17, 2010 (the "2010 Tax Act"). The cash grant was the most important policy for driving renewable energy growth in the United States during 2009 and 2010. The 2010 Tax Act also created another important incentive for renewable energy project finance for 2011 -- 100% bonus depreciation.
These incentives will stimulate investment in renewable energy projects in 2011. The cash grant extension will strengthen job creation in the construction and operation of renewable energy projects and the bonus depreciation could cause significant investment in manufacturing plants in a number of business sectors which could also result in many new jobs.
