A car wash in Oklahoma that recently installed a Windspire wind turbine
Last week the US Treasury and Energy departments made a major announcement regarding incentives for businesses that install renewable energy, including Windspire wind turbines. $3Billion dollars will now be made immediately available to reimburse businesses, which is a change from the former tax credit model. Treasury will pay reimbursements within 60 days of receiving an application if the project is complete. If the project is not complete, Treasury will pay within 60 days of completion. This will make installing Windspire wind turbines even more affordable.
The Windspire is included in the program based on this definition:
Qualified small wind energy property: Qualified small wind energy property is property that uses a qualifying small wind turbine to generate electricity. A qualifying small wind turbine is a wind turbine that has a nameplate capacity of not more than 100 kilowatts.
Here are some excerpts from the press release posted on the Department of Energy EERE News website. According to Treasury Secretary Tim Geithner the direct payments are available for both large and small companies. The major change in the program is that businesses will forgo tax credits in favor of immediate reimbursement.
As part of an innovative partnership aimed at increasing economic development in urban and rural areas while setting our nation on the path to energy independence, the U.S. Department of the Treasury and the U.S. Department of Energy today announced an estimated $3 billion for the development of renewable energy projects around the country and made available the guidance businesses will need to submit a successful application. Funded through the American Recovery and Reinvestment Act, the program will provide direct payments in lieu of tax credits in support of an estimated 5,000 biomass, solar, wind, and other types of renewable energy production facilities.
The Recovery Act authorized Treasury to make direct payments to companies that create and place in service renewable energy facilities beginning January 1, 2009. Previously, these companies could file for a tax credit to cover a portion of the renewable energy project’s cost; under the new program, applicants would agree to forgo tax credits down the line in favor of an immediate reimbursement of a portion of the property expense. This direct payment program allows for an immediate stimulus in local economies.
They are not yet accepting applications, but there is a website available with more information http://www.treas.gov/recovery/1603.shtml.
Here are links to a guidance document and a sample application:
Guidance document
Sample application
