HARRISBURG – Pennsylvania businesses pursuing renewable energy projects that qualify for federal tax credits are encouraged to apply for a direct refund from the federal government.
The U.S. Department of Energy and the Department of Treasury announced the plan to support the development of approximately 5,000 renewable energy production facilities. Department of Environmental Protection Secretary John Hanger told Pennsylvania businesses that the program will supply immediate cash payments in lieu of future tax credits.
“Companies want to develop renewable energy projects, but may lack the necessary funding. The cash payments will make funds available that can be used immediately to invest in such projects, which will create jobs and help stabilize and grow Pennsylvania’s economy,” said Hanger. “Pennsylvania has a number of programs designed to encourage and assist green energy production, including a tax credit program for renewable energy production. The federal program is yet another tool that can be used as a potential source of capital that can help move stalled projects forward and drive us down the road toward energy independence.”
As much as $3 billion in funding for the immediate federal tax credit program is being made available through the American Recovery and Reinvestment Act. A company that creates and places in service a renewable energy facility beginning Jan. 1, 2009 can receive an immediate cash payment to cover a portion of the project’s cost. Previously a company would receive a tax credit.
This new program would generate an immediate cash payment to cover the eligible costs in lieu of future tax credits. Companies interested in applying for the federal refund program can visit here. To learn more about how the federal economic recovery program will benefit Pennsylvania, visit here.
