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Energy Tax Credits

Guest Blogger, David Feldman of NREL, Discusses Treasury Scrutiny of Section 1603 Applications and Grants

Recent documents released from the IRS and the U.S. Department of Treasury show increased scrutiny on Treasury’s 1603 Cash Grants in Lieu of Energy Tax Credits program.  The program has awarded a significant amount of money to renewable energy project owners.  From September 1, 2009 through September 9, 2011, the 1603 program issued around $9 billion to 20,000 projects.  This large government expenditure has put an equally large responsibility on the Treasury department to ensure the funds are used correctly.Read More »Guest Blogger, David Feldman of NREL, Discusses Treasury Scrutiny of Section 1603 Applications and Grants

Treasury Identifies Ineligible Costs Under Section 1603

The Treasury Department is vested with the authority to review and approve applications for funding by the Section 1603 grant program.  In completing such applications, applicants should consider the key areas of concern and past rejection by the Treasury Department.  In addition, a recent Chief Counsel Attorney Memorandum explains that the Internal Revenue Service will retain authority to audit Section 1603 grants because excess grants result in understated income.  Applicants should review their applications in light of the Treasury Department’s initial review and possible audit by the IRS.Read More »Treasury Identifies Ineligible Costs Under Section 1603