February 19, 2009 / Law Alert

Recent Legislation Enhances Energy Tax Credits and Other Incentives

In keeping with President Obama's plan to make green-sector projects a significant aspect of economic stimulus efforts, the recently enacted 2009 federal stimulus legislation includes a number of provisions devoted to fostering alternative energy investment. Many of these provisions come in the form of tax credits, grants, and incentives and are available to a wide spectrum of taxpayers including businesses and utilities. In particular, the stimulus legislation extends the years during which alternative energy tax credits are available and offers taxpayers tax-free grants in lieu of tax credits in some situations. In addition, legislation adopted in late 2008 substantially expands the types of projects eligible to receive federal alternative energy tax credits.