The US Treasury Department announced on Thursday that it will use $3 billion in Recovery Act Funds to provide direct payments to US businesses involved in renewable energy projects in lieu of the tax credits they are already eligible for. Successful applicants to the new program will forgo the credits, which typically cover a portion of the project's cost, in exchange for an immediate reimbursement of a portion of the property expense. An estimated 5,000 biomass, solar, wind and other types of renewable energy production facilities are expected to be supported by the program. The Treasury and Energy Departments expect the program to accelerate the rate of new renewable energy installations, which has fallen since the economic crisis began. “This partnership between Treasury and Energy will enable both large companies and small businesses to invest in our long-term energy needs, protect our environment and revitalize our nation's economy,” said Treasury Secretary Timothy Geithner. The funding will help meet the White House's goal to double US renewable energy production over the next three years and also provide companies with easier financing than many can obtain in the private sector where credit remains tight. The money will provide direct payments in lieu of tax credits to support an estimated 5,000 bio-mass, solar, wind and other renewable energy production facilities.
