The US Dept of Energy and the US Treasury have just announced a $2.3 billion tax credit program for green energy equipment manufacturers.
The program provides a 30% “investment tax credit” for companies producing renewable energy equipment and it should be a big help to manufacturers of the following types of equipment:
- Geothermal energy equipment
- Fuel cells
- Electric car components
- Materials used in electric grids that support the transmission of renewable energy
- Energy conservation technologies
- Equipment that captures (and sequesters) carbon dioxide or reduces greenhouse gas emissions.
This new program could help to enhance a loan program that has also been enhanced by the Stimulus Package – the Green 504 Loan.
“The Green 504” is a new wrinkle with the SBA 504 loan program that allows companies that use or produce renewable energy to finance commercial real estate projects upwards of $12,000,000, so it is possible that this new tax incentive will encourage more businesses to consider an SBA real estate loan.
The tax credit caps out at $2.3 billion and the credits are available for 2 years or until the money runs out. Full details of the program as well as instruction on how to apply are available from the Department of Energy website at: www.energy.gov/recovery/48C.htm
For more information about the Green 504 loan please visit our main site at www.greencommercialcapital.com