Guidebook to geothermal power finance

Original publisher: Golden, Colo.: National Renewable Energy Laboratory, [2011] OCLC Number: (OCoLC)697174519 Subject: Geothermal engineering -- Research -- Economic aspects -- United States. Excerpt: ... Table 3-2. Summary of Federal Financial Incentives for Geothermal Projects Tax Appetite Timing of Required? Description Payment * Relevant Dates Production Tax 2.2 cents / kWh ( 2010 $ ) At end of each of the first In service on or before Yes produced for first 10 years 11 tax years 12 / 31 / 2013 to qualify Credit ( PTC ) * * In service before 30 % of eligible tax basis 1 / 1 / 2014 Investment Tax At end of first tax year Yes after in-service date Credit ( ITC ) In service before 10 % of eligible tax basis 1 / 1 / 2017 Unless otherwise extended, under 30 % of eligible tax basis of construction by property 12 / 31 / 2011 to qualify and in service by 1 / 1 / 2014 60 days after completion Treasury Cash of application ( after in No Grant * * * service ) Unless otherwise extended, under 10 % of eligible tax basis of construction by property 12 / 31 / 2011 to qualify and in service by 1 / 1 / 2017 Modified Accelerated Accelerated depreciation over At end of each of the first Yes None at this time Cost Recovery 5-6 years instead of asset life 6 tax years System ( MACRS ) DOE Loan Guarantee for up to 80 % of Backstop provided at time Under construction by No project loan amount of financing 9 / 30 / 2011 to qualify Guarantees * Refers to ability of the project owner to make use of tax credits or deductions. * * The recipient of a tax credit can reduce the amount of taxes they owe to the government by the amount of their credit. Further information about the PTC, ITC, and Treasury Cash Grant incentive programs is included in Appendix A. * * * The 1603 Program administered by the U.S. Department of the Treasury is commonly referred to as the " cash grant " or " cash grant program. " In actuality, however, the 1603 Program is a " Payment for Specified Energy Property i...