Published on 17. Dec 2010
“This is a great day in the u.s. solar industry,” the solar Energy Industries Association, the President said, after President Obama signed an extension of the Treasury Department part 1603 program Friday statement.
The program enables companies to obtain a cash grant of 30% of the Federal Investment tax credit instead of photovoltaic systems, solar or other renewable energy sources equipment installation. It was set to expire on 31. Dec. 2010.
The form of a cash grant year extension included Tax Relief, unemployment Insurance Reauthorization and Job Creation Act 2010. The measure was sponsored by Sen. Harry Reid, D-Nev., and co-sponsored by Sen. Mitch McConnell, R-Ky.
Signed legislation to extend the Act emergency jobless Friday benefits 3. 1.1. until 2012, up to 2.6 million unemployed Americans whose inspections were carried out in the last months off, or would have been to put an end to the end of the year, Mr. Obama said before the signing of the law. It extends the approved President George w. Bush during the administration of the tax and estate tax reimposes canceled. The Act provides for the possibility of accelerated depreciation allowances to certain newly established firms in equipment – another important advantage of some prospective owners — the payroll tax reduction in the land of the rising sun as well.
Part 1603-the program has provided approximately $ 5.7 billion in cash grants in the land of the rising sun in electric systems, solar thermal projects, wind turbines, biomass, geothermal installations, fuel cells, the projects, the operator of the gas systems of energy and other projects, the figures showed the latest Treasury Department.
1,656 Projects grants tax credits instead of the approximately three quarters have been solar electricity projects.
The largest single solar electricity will have a duration of approximately 19.5 million was $ eSolar Inc. California project. A set of $ 10.000 euro prizes is divided into electronic solar installations. At least 13 wind energy projects in each of the grants received money from more than 100 million dollars.
Mr. Resch said “it took years of tireless effort for the entire solar industry and our Champions Congress for an extension of the 1603-programme”. “President Obama and we both winners of the Senate and House recognize that the solar industry is one of our country among the fastest growing industries in the this snap-in to create tens of thousands of new jobs for Americans.”
Part 1603 subsidy program is primarily commercial configurations, but it may cover losses stemming from lending collateralised by residential institutions, under certain circumstances. For example, of the Treasury Department’s website says, builders, and contractors who install a photo-voltaic residential properties are not eligible for payment of fees, unless they continue to own the property in the land of the rising sun.
Some of the characteristics of the place of residence may be granted, the Ministry of finance to be named after him. For example, the title says, “the building, which is used for residential use a feature may be granted if the depreciation or amortisation is its owner instead of amortization. This means that the feature must be used or the production of the business or income. If the applicant is a company that would otherwise be eligible solar energy system installed at the premises of the institution of the place of residence, which will be used for the production of the revenue of the business of rent roof, for example, the property should be eligible. “If the applicant has, however, the homeowner, who installed the solar energy system on the roof of his home and personal use solar energy property, the property does not, therefore, depreciation, and should not be granted.”
The sharp growth in solar photovoltaic industry in the second and third quarter of this year was, a new research report shows, but many installers feared of collapse if the part 1603-the program was allowed to expire at the end of 2010.
“Tag is now stationary, 1603-program, solar industry continues its growth and the creation of a new record in the career development opportunities for Americans of all 50 States in 2011,” Mr. Resch said.
Trade Group had been lobbying for the extension of two years from the date of the grant money for the program, but as the expiration date, that loomed hope has been replaced by an urgent need to make sure that it will continue through at least 2011.
“Two years would be better, but one is better than none,” said CEO Lyndon Rive, SolarCity, the Setup program for the residential and small commercial systems, such as he watched his putting up employees in the company, Calif commercial project in Lancaster.
Both tax-cut the measure also includes a President Obama, which leads to new business investments in equipment, provisions, depreciation of, another possible benefits of taking into account the Sun project commercial property law relating to the provision of requested by the owners. The laws in force in the period of expenditure shall be permitted to charge companies, depreciation and amortization schedule.
Thanks to the agreement in the form of 100% of the companies at the expense of their investments in 2011, will be created in any other business investment in 2011, in which the Administration said the fuel jobs, more than 50 billion dollars.
Mr. Rive said 100% depreciation increase the unintended consequence could have been because it “soaks up tax appetite” companies, reduce their ability to take advantage of the Investment tax credit. Was 100% expensing provision passed without Treasury cash grant, the result could be a “devastating solar industry,” he said.
Monetary grants to companies, which are limited to 30% reduction of the tax liabilities of the solar system offer the Federal Government.