Appendix A: Incentives (summary provided by Wind Inc. Check with your CPA)
Unless otherwise noted, these incentives apply to common Renewable Energy Technologies: Wind, solar (PV, electrical CSP, and solar thermal heating) geothermal, biomass, landfill gas, hydroelectric, etc.
(We at www.wind-inc.com believe you should take every legal federal incentive)
Public Entity Incentives
1. Renewable Energy for America Program (REAP), administered by the USDA under the authority of the 2008 Farm Bill. Several different funding incentives are offered under the program that apply to both private and public entities. All incentives are designed to assist farmers, ranchers and users in rural areas. Grants for FY2009 were due July 31, 2009.
a. Energy Audit/Renewable Energy Development Assist. Public entities and governments are eligible to receive grants up to $100,000 for an energy audit and renewable energy feasibility studies.
b. Renewable Energy Systems/Energy Efficiency Improvements Grants. Wind Inc highly recommends these grants and can help you with grant applications. Small business and rural electric cooperatives are eligible to receive up to $500,000 for renewable energy systems or $250,000 for energy efficiency improvements.
c. Feasibility Grant Program. Small business and rural electric cooperatives are eligible to receive up to $50,000 for feasibility studies and not exceed 25% of project cost.
2. Renewable Energy Production Incentive (REPI), administered by the Department of Energy (DOE) under the Energy Policy Act of 1992. This incentive is similar to the Production Tax Credit, but applicable to public entities. The DOE will pay the producer annual payments in the amount of 1.5 cents in 1993 dollars per kWh produced and sold (~2.1 cents per kWh in 2008).
3. Clean Renewable Energy Bonds (CREBS), administered by the IRS. Public entities can issue virtually interest free bonds, with tax credits issued to bondholder in lieu interest payments. Projects eligible for PTC are eligible for CREBS.
4. Qualified Energy Conservation Bonds (QECB). These bonds are tax credit bonds similar to CREBS, but are not approved by the Department of Treasury. Instead the states receive a proportion and divide the allotment between large local governments (counties and cities with more than 100,000 people) based on population.
5. Local Energy Assurance Planning (LEAP). Administered under American Recovery and Reinvestment Act by the DOE, this program provides grants from $60,000 to $300,000 to cities integrating renewable energy or modernizing their assurance planning. The amount of the grant is dependent on city size and matching funds are not necessary. Only cities, or comparable entities such as municipalities, towns, and consolidated city-county governments are eligible. Deadline for applications were October 22, 2009.
6. The Energy Efficiency and Conservation Block Grant (EECBG). Administered under ARRA and the Energy Independence and Security Act of 2007 by the DOE, this program provides grants to cities and municipalities. In Texas, EECBG is administered by the State Energy Conservation Office and directly by DOE. Wind Inc. suggests an expert to write block grant applications.
Commercial Incentives (These may apply to many Wind Inc clients)
1. Production Tax Credit (PTC), IRS. Eligible commercial and industrial energy producers receive a tax credit in the amount of 1.5 cents in 1993 dollars per kWh of wind, biomass, and geothermal produced and sold (~2.1 cents per kWh in 2008).
Marine energy (>150kW), hydroelectric, and municipal solid waste receives 1.1 cents per kWh produced and sold. The credits are paid out for the first ten years of service.
2. 30% Investment Tax Credit (or grant) the 30% includes the cost of the turbines and installation, and if a grant for cash is applied for the government is required to respond within 60 days of application.
3. Depreciation deduction on the units, can be as short as 5 years or up to 12 years depending upon the life of the units.
4. Some banks and investors are offering lease purchase where they will purchase the turbines and lease or give an option to buy the units back to the landlord at some given time 95 to 10 years. This makes the capital financing possible for many who wish to put turbines in.
There are state grants, federal grants, community grants, educational development grants, and a host of programs available for those who wish to pursue this. We would suggest a professional grant writer to achieve these efficiently.