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The stimuluspackage is designed to address the recession and in the short term people were anxiously awaiting two key components of the plan: clarification on the details behind “ grants in lieu of tax credits ” and awards of loan guarantees by the DOE from section 1705. Is tax equity dead? Earlier post.).
Last year people were able to get unleveraged tax equity financing to monetize the production tax credits at yields to the tax investor of 6-7%; this year tax equity investors are seeking yields ranging from 10-15% for leveraged tax equity transactions utilizing the investment tax credit that is now available under the Stimulus Bill.
The new administration’s stimuluspackage allots $2B for advanced batteries, $300M for federal and states fleets to buy new clean fuel vehicles and $7,500 tax rebate for PHEV, with yet more money in the Auto-Industry Re-tooling fund. No on has a lock on this future; everything is up for grabs.
Price and tax incentives need to be worked out. Robert Hayden, the clean transportation adviser for San Francisco, said the city hopes to have 60 charging stations installed in public garages by year’s end, with a thousand more available across the Bay Area in 2011. Locations must be found for charging stations.
Tax Credits Instead, Obama backed tax credits of as much as $7,500 inthe stimuluspackage approved in February for buyers of plug-incars. We will have packages that will be verycompetitive at that time.” millionthis year from $211.9 million, according to the EnergyDepartment Web site. Oil prices are going to go up.
The treasure chest was cleverly disguised in the form of Federal stimulus money from the ARRA, the American Recovery and Reinvestment Act. That’s why they have authorized over $7 billion bucks in energy efficiency and clean energy programs for the USA. Imagine that.
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