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Real Estate Alert
Breaking real estate industry developments from Grant Thornton LLP


New Federal Grant Program for                                    Featured Content
Alternative Energy Assets
The U.S. Treasury Department is slated to begin
accepting grant applications in July 2009 for investments
by businesses in alternative energy generating assets.
The grants can be taken in lieu of federal income tax
credits that would otherwise be available for property
placed in service in 2009 and 2010. The grants are
available for either the section 45 production tax credit or
section 48 energy tax credit, and are worth up to 30% of         Focusing on principles in a
                                                                 challenging economy
the qualifying investments. Some of the most significant
                                                                 How can business leaders respond to
types of alternative energy property that qualify for the        pressure on their organizations’ ethics
grants include:                                                  and values in today’s economy? In
                                                                 this video, Grant Thornton CEO Ed
       Wind energy property                                      Nusbaum offers five actionable
       Fuel cell property                                        recommendations. View Video »

       Solar property
       Geothermal property

Grant details and requirements
The grant (cash) may be a better option for taxpayers
without taxable income. It could also be beneficial for
taxpayers as part of a financing package. However, keep
in mind that like the section 48 credit, the grant will
require a percentage (typically half of the credit or grant
amount) of basis reduction in the asset for tax
depreciation purposes. This could cut into valuable
depreciation deductions under a number of cost recovery
methods, including regular five year tax depreciation,
50% bonus tax depreciation, or section 179 expensing.
The grant is not subject to any overall funding limitation
imposed by the U.S. Congress, and Treasury could grant
well over $100 billion.

Formulating your grant requests
Across the nation, real-estate focused Grant Thornton tax
professionals are available to answer any questions about
the impact of this new federal grant program on you or
your business. Please call your local Grant Thornton real
estate industry professional, or contact:

John Michel, Real Estate Tax Practice Leader
513.345.4533
John.Michel@gt.com

								
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