Energy Production Companies Receive Direct Cash in Place of Tax Credits-

The United States government is doing its part to incite venture capital investments in clean and renewable energy by offering cash awards to energy production companies in place of earned tax credits. In a recent announcement, U.S. Treasury Secretary Tim Geithner and U.S. Energy Secretary Dr. Steven Chu awarded $502 million in the first round of funding in an effort to help produce upfront capital – allowing companies to create jobs and begin construction that may have been put on hold. Twelve projects were awarded grants. Penascal wind farm in Sarita, Texas received the largest grant, over $114 million. The 12 winning projects would be able to produce 840 megawatts of electricity, representing a 3 percent increase in total U.S. renewable energy generation capacity. “These grants will help America’s business launch clean energy projects, putting Americans back to work in good construction and manufacturing jobs. The initiative will help double our renewable energy capacity over the next few years and make sure America leads the world in creating the clean energy economy of the future,” said Secretary of Energy Chu. Treasury Secretary Geithner said, “This renewable energy program will spur the manufacture and development of clean energy in urban and rural America, allowing us to protect our environment, create good jobs and revitalize our nation’s economy.” The agenda, introduced under Section 1602 of the Recovery Act, is anticipated to generate more than $3 billion in fiscal support for clean energy projects by supplying direct payments in place of tax credits. Over the life of the program, these direct payments will sustain around 5,000 renewable energy production facilities of all forms throughout the nation. More than 2,000 Americans will have access to jobs in the renewable energy industry as a result of this first round of funding – both in construction and manufacturing – and will bring the nation one step closer toward the goal of a clean energy economy.