IRS Announces Qualifying Advanced Energy Project Tax Credit Program: Preliminary Applications Due September 16, 2009
The Internal Revenue Service yesterday issued Notice 2009-72 (the “Program Guidance”) establishing a program implementing the Qualifying Advanced Energy Project Credit (“QAEP Credit”) under Section 48C of the Internal Revenue Code (the “Code”). The Program Guidance may be found on the IRS website: http://www.irs.gov/pub/irs-drop/n-09-72.pdf.
The QAEP Credit was enacted as part of the American Recovery and Reinvestment Act of 2009 (“ARRA”). It is intended to encourage the development of a domestic manufacturing base to support the U.S. renewable energy industry by providing a tax credit equal to 30 percent of the “qualified investment” in a “qualifying advanced energy project.” The QAEP Credit is subject to a nationwide limitation of $2.3 billion, which must be allocated among eligible projects. ARRA required the Treasury Department to establish by August 17, 2009, a program to consider and award certifications for the QAEP Credit. The program announced yesterday fulfills that mandate and sets a short timeline for credit allocation applications.