Are Solar Projects in Puerto Rico Eligible for 1603 Funding?
We would like to get some information regarding the possible 30% grant under section 1603 for our Solar Photo Voltaic Panel power generation project in Puerto Rico. The project’s first stage size is @ 20 MW. The project site cleanup is being addressed by the U.S. Environment Protection Agency (EPA), under authority of the Resource Conservation and Recovery Act (RCRA). The cleanup proposal has been finalized. The main concern (question) we have regarding this project is, which we would like to get answer from you is: Is this project, which will be executed in Puerto Rico (Commonwealth) is subject to receive ARRA grant of 30% cash back? It will be highly appreciated if you reply at earliest. Thank You. Best Regards, Clark ____________________________________
Thanks for your question. While we are unable to answer specific legal questions online without knowing more details about your specific project, we can certainly provide some general information about the 1603 funding guidelines and the other issues you raised.
First, you are right to be concerned because as a general rule, to be eligible for Section 1603 grant funding, the property must be used predominantly in the United States. However, there is an exception to this general rule which says that if a property is described in the Internal Revenue Code (IRC), section 168(g)(4) which includes property owned by a domestic corporation or U.S. citizen that is used predominantly in a U.S. possession (including Puerto Rico).
To be eligible, the corporation must also not have an election in effect under section 936 of the IRC and the U.S. citizen must not be entitled to the benefits of section 931 or section 933 of the Internal Revenue Code.
In other words, with a few exceptions, renewable energy projects in Puerto Rico should be eligible for funding under the 1603 program.
As for the RCRA issues, there doesn’ t seem to be any indication that contaminated land is ineligible for the 1603 grant. In fact, there are a number of innovative incentive programs offered to encourage renewable energy projects on polluted land. Have a look at EPA’s website for further suggestions and information.
Legal Disclaimer: The information contained on this site is for educational and information purposes only and does not constitute legal advice or a legal opinion. Although we go to great lengths to make sure our information is accurate and useful, we make no claims, promises or guarantees about the accuracy, completeness, or adequacy of this information. The law changes very rapidly, from jurisdiction to jurisdiction, and is subject to interpretation by courts. Legal advice must be tailored to the specific circumstance of each case and, therefore we recommend you consult a lawyer if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation. Accordingly, nothing that you read or is provided on this web site should be used as a substitute for the advice of competent legal counsel. Transmission of the information is not intended to create, and receipt does not constitute, a lawyer-client relationship between Cleantech Law Partners, LLC., the author(s), and you, and we will not be liable or responsible to you for any claim, loss, injury, liability, or damages related to your use of this site or any site linked to this site.
|Tags: 1603 ARRA cash back funding grant grant funding section 1603 Solar solar projects||[ Permalink ]|