Grants for Commercial Solar Power Are Set to Expire at the End of This Year
Federal Renewable Energy Grant funds, which can be applied to 30 percent of commerical solar power systems, are set to expire at the end of the year. These grants were set up as a part of the stimulus package for small businesses that were not bringing in large enough profits to benefit from the full 30 percent tax credit.
You’ll be eligible to apply, if you’ve incurred 5 percent of your equipment costs by 12/31/2010 and the construction of your system began between 1/1/2009 and 12/31/2010. Generally, construction begins when “physical work of a significant nature” begins. Any taxpaying entity eligible for the 30 percent Business Energy Investment Tax Credit or the 30 percent Renewable electricity production tax credit (PTC) (for corporations) can opt to receive these grants instead of a tax credit. Applicants will not be able to get a tax credit AND a grant. Residential solar power systems qualify for a 30 percent tax credit, but not grant funds. In addition to photovoltaic systems, this grant covers other forms of renewable energy systems including wind, solar thermal electric and more. Be sure read up on the details and refer to a tax consultant for guidance. The application process can be viewed here.