Electing Cash Grants in lieu of Production or Investment Tax Credits
The American Recovery and Reinvestment Act of 2009 included a number of significant changes affecting businesses engaged in the renewable energy market. One of those changes allows a taxpayer to elect to receive a cash grant in lieu of the investment tax credit under Section 48 of the Internal Revenue Code, or the production tax credit under Section 45 of the Code on specified renewable energy property placed in service during 2009 or 2010, or by a later credit termination date if the property is not placed in service during 2009 or 2010 but construction has begun during 2009 or 2010.
Our Renewable Energy Group summarized the cash grants in lieu of investment or production tax credits in a recent Reed Smith client alert.
