Fast Growing Success of Alternative Energy Cash Grant Program
Fast Growing Success of Alternative Energy Cash Grant Progam
In the course of our Energy practice we have been impressed by the increasing popularity of the alternative energy cash grant program. The most popular grants we have been processing are for solar, geothermal, combined heat and power and wind.
The federal government has been totally transparent about the results of this program and publishes monthly grant results by alternative energy technology and by geographical location. The purpose of this article is to explain the program, analyze the year to date results and offer the authors predictions on potential prospective results. It is our sincere hope that the demonstrated success of this program will result in it's continuance.
(spencer explain the overall program here).
Eligible Technologies and Grant Amounts
The alternative technologies eligible for tax grants or credits are presented in the following table:
Specified Energy PropertyCredit Termination DateApplicable Percentage of Eligible Cost Basis
(we will insert current table)
Program User Attributes
The typical program user is commercial company who has either 1. no current tax capacity 2. Is unsure of tax capacity or 3. Likes the certainty and efficiency of the program. Our grant clients with with no tax capacity or uncertain tax capacity are in this position for a variety of reasons. In certain cases they have experienced losses becausee of the current difficult economic climate. In other cases we have clients who have tax losses as result of other tax programs including cost segregation and bonus 100% deprecation losses.
Many of our clients are experiencing tax losses as result of the alternative energy cash grant investment itself particuarly for alternative energy investments made from September 9th 2010 through December 31st 2011.
Example: Presume a company that expects 300,000 in pretax income makes a 1,000,000 solar investment in 2011. The first year tax results from the solar investment would be as follows:
(spencer we will insert the example)
Analyzing current program results
Predicting Future Results
In our opinion we don't believe that the program results to date will necessarily illustrative of prospective program results. Readers should be cautioned that this is merely our opinion. We believe that the overall prospective grant levels will be much higher and that their will be technology mix shift with proportionately more grants related to solar, geothermal, combined heat and power and fuel cells. Our predictions are based on the following:
Geothermal (cite to our article)
Combined Heat and Power (cite to our article)
Fuel cells (cite to cloud computing article)
Weave in our recently published tipping points article.