What the Economic Stimulus Packages means for Colorado Energy Companies

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What the Economic Stimulus Packages means for Colorado Energy Companies

ARRA (Economic Stimulus Package): Energy Grants and Tax Credits

The American Recovery and Reinvestment Act of 2009 (“ARRA”) includes numerous grant opportunities and tax incentives for businesses in the energy and renewable energy industries. Among other things, the ARRA includes:

$3.2 billion in energy efficiency and conservation block grants which will be made available through grants made to eligible state and local governments
$4.5 billion for electricity delivery and energy reliability (“EDER”), including technical assistance to states, regional reliability entities, and other transmission owners and operators, as well as the purchase of demand response equipment to enhance energy infrastructure, security and reliability
a new 30% investment tax credit for qualified investment in a “qualifying advance energy project,” that re-equips, expands or establishes equipment for the production of energy from renewable resources, electric grids for the transmission of renewable energy, and other qualifying projects
a three-year extension of renewable energy production tax credits for wind, biomass, and other renewable energy sources
an investment credit in lieu of production credit for facilities that produce electricity from wind, biomass, hydropower or other renewable energy sources
an additional $1.6 billion of clean, renewable energy bonds to finance facilities that generate electricity from wind, biomass and other renewable sources, as well as $2.4 billion of qualified energy conservation bonds to finance state and local programs designed to reduce greenhouse gas emissions and other conservation purposes

We can assist you in identifying potential grant opportunities under the ARRA as well as evaluating qualification for new and extended potential tax credits afforded under the ARRA. If you are interested in obtaining additional information regarding these opportunities, please contact Peter L. Edwards, Craig N. Johnson,or Michael H. Smith .

This Article is published for general information, not to provide specific legal advice. The application of any matter discussed in this article to anyone's particular situation requires knowledge and analysis of the specific facts involved.