Washington, D.C. -- In typical fashion, the U.S. Congress passed a suite of last-minute tax laws last night, including an extension of the Treasury Grant Program (TGP) for renewable energy project developers.
Trade groups in Washington have been pushing hard for an extension of the program, which provides a cash payment of up to 30% of equipment costs in place of the Investment Tax Credit. The grant program was responsible for a large portion of the renewable energy projects built throughout the U.S. in 2010. Originally passed as part of the 2009 stimulus package, the TGP was supposed to expire at the end of December.
Because there are still a limited number of financial institutions able to finance projects by taking advantage of tax credits, the TGP has opened up new sources of capital for project developers. According to the Solar Energy Industries Association (SEIA), the grant program spurred over 1,100 solar projects and 18 billion dollars of investment in 2010.
"This program has successfully created thousands of jobs and opportunity in all 50 states for construction workers, electricians, plumbers, contractors that have struggled in this harsh economic climate," said SEIA President Rhone Resch in a statement.
While the wind industry saw a significant drop in installations compared to 2009, the grant program helped keep thousands of MW on the table for 2010 and 2011. American Wind Energy Association CEO Denise Bode projected a loss of tens of thousands of wind jobs in 2011 without an extension of the TGP.
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