Congress Extends Renewable Energy Grants

The fight in the December 2010 lame-duck Congress over a massive tax bill got a lot of press coverage, almost all of it focused on tax cuts passed under President George W. Bush. But the bill, now signed into law, also included the Treasury Grant or “1603” program, which provides subsidies for building large and small wind projects, biomass facilities, solar projects, and other energy-producing property. The program effectively extends tax credits for these projects that had been in place since the Energy Act of 2007; instead of credits, however, the new bill provides grants. Aid in this form may be more effective for companies whose cash flow, affected by the recession, will not be helped by tax credits. More information on the 1603 program is available at www.treasury.gov.