FW: Information on ITC and Accelerated Depreciation for 2009 Projects

Hello all,

I’m sending you the attached information on the ITC and the 2009 Federal Accelerated Depreciation so you can apply for these two grant programs.  Here are a couple key highlights of these programs if you apply for and are granted the awards in 2009:

 

ITC:

What is the amount of the tax credits?

30% of the total installed cost of the system.

Can a system owner use the credit in addition to a state credit or rebate, federal grant, or other

government incentive? If so, how does this work?

Pursuant to ARRA, for periods after December 31, 2008, a system owner can use either credit in

addition to a state credit or rebate, federal grant, or other government incentive. Under prior law,

in determining the amount of credit allowable with respect to certain government-subsidized

projects, the taxpayer was required to reduce the cost of the project to reflect the government

subsidy.

 

Also, you can choose to take this as a one-time cash grant if done in 2009.

 

Accelerated Deprecation:

What percentage of my wind turbine system can I depreciate on my tax forms?

Small wind turbine owners are entitled to deduct 50% of the adjusted basis of the property in

2008 and 2009. The remaining 50% of the adjusted basis of the property is depreciated over the

ordinary MACRS 5 year accelerated depreciation schedule. Before calculating depreciation for

such a project, including any bonus depreciation, the adjusted basis of the project must be

reduced by one-half of the amount of the energy credit for which the project qualifies.

 

So if you install projects this year you could potentially get 75% or more returned through these grants and tax credits.  That’s not to mention the SGIP or CA Net Metering potentials.

 

Please let me know if you need any help or want more info.  I will also send you information on a Webinar put together by Windustry this Thursday on the ITC, PTC, and Cash Grants.  I’d highly recommend taking part.

 

Take care,

Andrew

 

 

Andrew J. Hammen

Regional Director, Western Region

Northern Power Systems

Direct:  (619) 846-2135

Fax:     (619) 923-2296

Email:  ahammen@northernpower.com