As of 15 March 2012, the US Treasury reported that US$11 billion of 1603 Treasury Grants had been awarded to developers of renewable energy projects since 2009. Since the program was launched as part of the American Recovery and Reinvestment Act (ARRA) of 2009, developers have been able to obtain cash grants in lieu of the Production Tax Credit (PTC) or the Investment Tax Credit (ITC). The 1603 program officially ended at the end of 2011, and only projects under construction as of year-end 2011 are eligible to receive Treasury grants. To count as 'under construction', more than 5% of the total project cost must be incurred. Key trends in this On Point include: Treasury Grant continues to underpin 2012 renewables build. Phase-out of grant will pressure smaller developers as solar tax equity demand rises. Renewable opportunities open up for strategic investors with tax appetite.
As of 15 March 2012, the US Treasury reported that US$11 billion of 1603 Treasury Grants had been awarded to developers of renewable energy projects since 2009. Since the program was launched as part of the American Recovery and Reinvestment Act (ARRA) of 2009, developers have been able to obtain cash grants in lieu of the Production Tax Credit (PTC) or the Investment Tax Credit (ITC). The 1603 program officially ended at the end of 2011, and only projects under construction as of year-end 2011 are eligible to receive Treasury grants. To count as 'under construction', more than 5% of the total project cost must be incurred. Key trends in this On Point include: