Sure you know what the 1603 program is.   You don’t?    In fact, we’re pretty sure that you who follow our messages about CDFI and New Markets Tax Credit won’t immediately relate to this important announcement.  But the Finance Fund has been looking into ways to participate in renewable energy initiatives as it is indeed aligned with our mission.   In that spirit, we thought the availability of $3 billion was worth sharing.    If you have ideas or interest in this topic, let us know.  In the meantime, here are some links to learn more about this new initiative.

The U.S. Department of Treasury and the U.S. Department of Energy announced recently that they are accepting applications for a federal cash grant program that will make direct payments to eligible renewable energy project owners in lieu of federal income tax credits.

With the goal of expanding the development of renewable energy projects throughout the United States and creating new jobs, The U.S. Government anticipates distributing at least $3 billion in financial support to approximately 5,000 bio-mass, solar, wind, and other types of renewable energy production facilities.

The funding for this grant program has been made available through the American Recovery and Reinvestment Act of 2009 which authorizes Treasury to make direct payments to companies that create and place in service renewable energy facilities beginning January 1, 2009.  Previously, these companies could only file for a federal income tax credit to cover a portion of the renewable energy project’s cost.

Under the Section 1603 grant program, applicants may elect to forgo future tax credits in favor of an immediate cash reimbursement for a portion of the property expense.