Details:

1. Federal Guidance Pending - Agency guidance in the next 60 to 90 days
• New program through Treasury that monetizes the tax credits
• Applicants receive 30% rebate on system costs when placed in service
• Projects must begin by 12/31/2010 and be complete by 1/1/2017
• Allows the ITC to be used by companies without sufficient tax appetite
• Support 120 MW in 2009, 320 MW in 2010

Smart Grid
• The legislation provides up to 50% reimbursement to smart grid demonstration projects
• This has the potential to increase the use of time-of-use pricing, enabling PV system owners to realize energy savings faster.

2. Tax code provisions effective upon enactment repeals penalty for subsidized renewable energy financing
• Allows businesses and individuals to qualify for the full amount of the solar tax credit, even if projects receive subsidized energy financing (e.g. below market loans, tax preferred bonds, state grants etc.).
• Increases value of ITC by 30-50%
• Expands opportunities for new financing models – e.g., Berkeley First.
• Helps avoid large upfront costs
• Enables consumers to transfer systems (with sale of home) to new owners

Extends Bonus Depreciation
• Extends temporary increases for capital expenditures incurred in 2009.
• Until the end of 2010, business taxpayers are allowed to write-off up to $125,000 (indexed for inflation) of capital expenditures subject to a phase-out once capital expenditures exceed $500,000 (indexed for inflation).

5-Year Carryback of Net Operating Losses
• For tax years 2008 and 2009, extends the maximum carryback period for net operating losses from two years to five years.
• An eligible small business is a taxpayer meeting a $15,000,000 gross receipts test.
• An applicable NOL is the taxpayer's NOL for any taxable year ending in 2008, or if elected by the taxpayer, the NOL for any taxable year beginning in 2008.

Smart Grid
• The legislation provides a 30% tax credit for property designed to produce energy conservation technologies (including energy-conserving lighting technologies and smart grid technologies) (Div. B, Section 48C, Page 10)
• This has the potential to increase the use of time-of-use pricing, enabling PV system owners to realize energy savings faster.

Qualified Energy Conservation Bonds
• Authorizes an additional $2.4 billion in bonds to finance State, municipal and tribal government programs to reduce greenhouse gas emissions.
• These bonds can be used by government agencies to reduce energy consumption in publicly-owned buildings by at least 20 percent, implement green community programs, or develop electricity from renewable energy resources.

Solar Water Treatment Plants
• Provides $6 billion for the State and Tribal Assistance Grants account to fund construction projects in the next 12 months.
• The bill requires that not less than 20 percent of each Revolving Fund be available for projects to address green infrastructure, water and/or energy efficiency, or other environmentally innovative technologies.

Green Collar Jobs
• Appropriates $500 million to fund job training programs in energy efficiency and renewable energy. (Div. A, Title VIII, p. 148)
• Appropriates $250 million for rehabilitation and construction projects on Job Corps Centers
• Includes energy efficiency and renewable energy projects. (Div. A, Title VIII, p. 150)

Department of Interior Funding
• Appropriates $125 million to BLM for the management of lands and resources
• Suggests funds be used for renewable energy rights-of-way and related permitting projects. (Div. A, Title VII Interior, p. 133)

Near Term Legislation
• Energy Bill
• Renewable Portfolio Standard
• Interconnection/Net Metering
• Additional tax incentives which will reduce/eliminate income tax for US solar companies
• Federal power purchase: 30 year authority
• Remove restrictive homeowner association covenants
• Restrict high-cost permits for residential installations