Energy Incentives

American Recovery and Reinvestment Act of 2009
Provides Energy Incentives

8/4/09

Kansas City, MO - The American Recovery and Reinvestment Act of 2009 (ARRA) provides a number of energy tax incentives for both small and large businesses. Below are some of the highlights.

Extension of Renewable Energy Production Tax Credit: This law extends the eligibility dates of a tax credit for business facilities that use wind, closed-loop biomass, open-loop biomass, geothermal energy, municipal solid waste, qualified hydropower, and marine and hydrokinetic renewable energy. The "placed in service date" is now Dec. 31, 2012, for wind facilities and Dec. 31, 2013, for the other facilities.

Election of Investment Credit in Lieu of Production Credit: Businesses that operate facilities that produce electricity from wind and some other renewable resources after Dec. 31, 2008 can now choose either the energy investment tax credit or the production tax credit.

Repeal of Certain Limits on Business Credits for Renewable Energy Property: ARRA repeals the $4,000 limit on the 30 percent tax credit for small wind energy property and the limitation on property financed by subsidized energy financing for property placed in service after Dec. 31, 2008.

Coordination with Renewable Energy Grants: Business taxpayers can apply for a grant in lieu of claiming either the energy investment tax credit or the renewable energy production tax credit for property placed in service in 2009 or 2010.

Temporary Increase in Credit for Alternative Fuel Vehicle Refueling Property: Qualified property placed in service in 2009 and 2010 is now eligible for a 50 percent credit, and the per-business location limit has increased to $50,000. Property relating to hydrogen remains at the 30 percent rate, but the per-business location limit was raised to $200,000.

Learn More Online
The American Recovery and Reinvestment Act of 2009: Information Center www.irs.gov/newsroom/article/0,,id=204335,00.html

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