As we relayed a couple of weeks ago, the Treasury Department has been slowly releasing details on the federal renewable energy grant program, which offers companies "payments for specified energy property in lieu of tax credits." In other words, instead of receiving a federal corporate tax credit worth 30 percent of the costs of an eligible solar energy system, businesses may instead apply to receive a cash grant of equal value. (To qualify for the grant option, systems must be installed in 2009 or 2010.)
Under the American Recovery and Reinvestment Act, the federal government offers businesses a cash grant worth 30 percent of the cost of qualifying renewable energy systems, provided they're installed in 2009 and 2010. The grant option is designed to provide direct payments in lieu of the 30-percent federal renewable energy tax credit. Until recently, details on the grant application and approval process were murky.