1603 Treasury Grant Consulting | Expert Advice
610.825.1578
Plan, Prepare, File
Gemstone has the experience and expertise to assist you and your clients with decisions regarding the use of the Section 1603 Treasury Grant program including the need to invoke the 5% safe harbor provision. Sometimes referred to as the Treasury Cash Grant, this cash in lieu of tax credit program has proven to be of great benefit to those building solar and certain other renewable energy systems. However, the 1603 program has very specific guidelines and guidance that must be followed and certain provisions differ significantly from the use of the Section 45 tax credit. Many developers and solar owners have had their 1603 grant applications rejected by Treasury or the amount of the grant has been reduced by Treasury. Others have not claimed the full amount of the 1603 program grant they are entitled to due to erroneous accounting decisions and lack of knowledge about qualification and calculation of the 1603 grant request.
Our services include assistance with solar project planning and economics; preparation and assembly of 1603 grant documents; filing of the 1603 grant application, responding to requests from Treasury and preparation/filing of required annual reports. We work with you and your accountant or tax professional to make sure you are properly prepared to submit and receive your grant award. We’ve done this a few times….in fact we have filed over 700 1603 Treasury Grant applications on behalf of both affiliated and unaffiliated developers.
Under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 (Section 1603), the United States Department of the Treasury (Treasury) makes payments to eligible persons who place in service specified energy property and apply for such payments. The purpose of the payment is to reimburse eligible applicants for a portion of the expense of such property. Eligible property under this program includes only property used in a trade or business or held for the production of income. Nonbusiness energy property described in section 25C of the Internal Revenue Code (IRC) and residential energy-efficient property described in section 25D of the IRC do not qualify for payments under this program but may qualify for tax credits under those provisions.
With the 1603 grant program expiring at the end of 2011, the 5% safe harbor provision has become even more important. Gemstone has a deep understanding of the safe harbor guidance and can help ensure you receive your eligible grant dollars on a timely basis.
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| Gemstone has filed over 700 applications with the Treasury to date with a 100% success! Through this process, we have found that owners are unprepared to submit proper applications and, more importantly, supporting documentation. This is causing applicants to (1) put their grant in total or partial jeopardy or (2) spend extra money and time to get the information in acceptable condition. In two specific solar applications, including one prepared by an accounting firm, we found over $75,000 of 1603 grant proceeds that would have otherwise been unfunded due simply to errors in the application. Receiving the full 1603 grant that your project qualifies for and getting the 1603 grant funded as quickly as possible will make your project(s) more viable and creditworthy.Gemstone 1603 Grant Program Consulting Services
Pre 1603 Grant Application Consulting Services Working with your accountant and tax professional, we will review your project documents and financial projections to ensure that the project meets the 1603 program guidelines and that important assumptions such as grant amount, timing of receipt, and proper documentation to support the 1603 grant application are in place. Ideally, this process should be completed before you enter into contracts with construction and financing providers. If there is a possibility that your project will not be completed by end of 2011, you must understand and be prepared to document compliance with the 5% safe harbor “begun construction” rules. Gemstone will work with your accountant and/or tax professional and contractor to be certain that your project will qualify for a 1603 grant even after the program expires. 1603 Grant Application Review Consulting Services Once your project is completed, the 1603 grant application requires specific information and schedules to be assembled prior to submission. Depending on the size and structure of your transaction, these may include accountant certifications, placed in service certifications, and other documents which will need to be completed before your 1603 grant application can be filed. You might also need to document compliance with the 5% safe harbor regulation. 1603 Grant Application Review Gemstone can review the information you have assembled and make recommendations based on our experiences. If warranted, we will make recommendations to allow the applicant to claim the proper and allowable grant amount under the circumstances. Document and Schedule Preparation Gemstone can prepare, coordinate and assemble all necessary documentation for your 1603 grant application. We understand the program requirements and keep up to date on various guidance documents issued by Treasury. 1603 Grant Application Filing Services Once your 1603 grant application is ready to be submitted, Gemstone can undertake the filing process on your behalf using the Treasury’s online submission system. In advance of filing we will make sure that you have set up your DUNS number and CCR registration which are required as part of the submission. Treasury often will have questions and/or requests for additional information. Gemstone will work with you and Treasury to get the questions and information requests answered quickly and efficiently. 1603 Grant Annual Reporting You’ve received your 1603 grant but the fun doesn’t stop there. Applicants are required to submit an annual report at each of the first 5 years after the system is placed into service. As part of the 1603 Grant Application Filing Service, Gemstone will complete the annual report each year on your behalf. |
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