The Clean Energy Stimulus
Posted by Dick Munson on March 31st, 2009
The recently approved stimulus package – aka, America Recovery and Reinvestment Act (ARRA) – offers several initiatives to advance combined-heat-and-power and waste-energy-recovery projects. Capturing and recycling energy certainly makes economic and environmental sense, but these new government incentives help reduce the initial capital costs, making now a great time to invest in clean energy. Here are just a few highlights of what ARRA will do:
- Creates a new grant program that provides “refundability” for the investment tax credit for combined heat and power (CHP) projects.
- Enables recycled energy developers to obtain direct loans through the Federal Financing Bank.
- Offers bonus depreciation for CHP, allowing 50% of the deprecation value to be taken in the first year.
- Allows businesses to use the CHP investment tax credit even if projects are financed with local development bonds or other subsidized energy financing.
- Allows biomass CHP developers to obtain a 30% investment tax credit instead of existing production tax credits.
Read a more detailed review of these provisions.
Very helpful overview. It’s about time Washington paid some attention to energy efficiency. The key tests lie ahead, however, when Congress considers laws for climate change and clean energy resources.
How can I find out more about the incentives & how to apply, etc.?
Orin:
The White House recently created a web site — http://www.recovery.gov — to track the various stimulus-funded programs. Included within that information are application guidelines. Specific information on the DOE grant for CHP/recycled energy/district energy will be announced at http://www.netl.doe.gov/business/solicitations/index.html.
Dick