WASHINGTON, Dec. 4 More than 600 renewable energy projects are being funded by $800 million from the U.S. Internal Revenue Service.
The money is being allocated in the form of Clean Renewable Energy tax credit bonds that replace interest payments in tax-free form. Applicants are in the process of being notified by the IRS.
The benefit is they are getting interest-free loans, said Timothy Jones, senior council in the IRS Office of Associate Chief Counsel. Local governments might use their own money to build the project. But if they can borrow the money interest-free, they'd be crazy not to.The money is being allotted to government and co-ops specifically because they are considered not-for-profit groups and do not qualify for the federal Production Tax Credits or solar investment tax credits.
Out of more than 700 applicants from government and electrical cooperatives, 610 qualified to receive the grants. Facilities that will benefit from the funding include: solar, wind, landfill gas, hydro power, biomass and refined coal.
The selected projects were proposed in California, New Mexico, New Jersey, Montana, Colorado, Massachusetts, New York and Ohio. The cost of the projects ranges from $23,000 to $80 million. Projects from 32 other states totaling $170 million were turned down for the grant.
The 2005 Energy Policy Act required that $500 million be given to state and local governments and $300 million should go to co-ops.
Copyright 2006 by UPI
