We don’t often find ourselves using the words “stimulating” and “government” in the same sentence, but the recently passed Stimulus Package (or The American Recovery and Reinvestment Act of 2009 [Pub.L. 111-5, PDF, H.R. 1, S. 1] if you want to get official about it) certainly has us thinking that way, at least when it comes to green energy.
Think AIG guys are the only people who got a bonus lately? Guess again: so did you. Want to know how to get it? Read on.
If you are giving any consideration to installing green energy for a bit on on-site generation…and if you’ve been reading this newsletter you know how much Cost Containment Intl. approves of this kind of thinking…the Stimulus Package has done three things which might just make you turn those thoughts into action. Basically, they boil down to this:
1. The Package removes caps on the credit for green energy projects. This is true for wind and solar…and also for previously underserved technologies like microturbines and Combined Heat and Power (CHP) systems. Previously, these credits had been capped at between $1500 and $4000, which wasn’t that much help to a commercial sized installation. Now, put as much solar up on that roof as you want, and the government will pay for 30% of it. Put up a wind turbine, whatever the size, and the government will foot 30% of the bill. Install some solar and some on-site wind…and the government will pay for 30% of all of it. The credits for microturbines and CHP is 10%.
2. You now get your government money in a form that’s useful to you. Previously, government incentives came in the form of Investment Tax Credits or Production Tax Credits. Under the new plan, a third option has been added: cash grants. The grants will now be overseen by the Treasury, and will supposedly be payable within 60 days of approval. Conversion between ITC and PTC has been expedited as well. So you can now get your full 30% back whatever way works best for you.
3. Bonus! Bonus depreciation, that is. Most projects installed in 2009 will qualify for a bonus depreciation of 50% basis value in the first year. This means you get half of the depreciation value back within a year of when your green power goes on line. This is, truth be told, money you were always going to get back, but getting it back so quickly takes some of the edge off the money you had to spend.
These are just the basics: there’s plenty more in the Package that’s of interest, like a tax deduction for energy efficiency, and if you give us a call we’ll be happy to talk about how it might affect your immediate plans. To take full advantage, you’ll want to be thinking strongly about a 2009 start date.
Oh, and don’t forget…this is just the federal incentive. Wherever you are, there are state and local incentives available to supplement the Stimulus. We’ll be happy to do the research (there are literally hundreds of different programs to consider) and give you a full report.
St. Patrick’s Day was the day for the wearin’ o’ the green. Today is the day for the installin’ o’ the green.