"Green" powering economic recovery

The federal government recently passed a $787 billion economic recovery plan designed to put millions of Americans back to work. The recovery bill emphasizes investment in projects that can be deployed quickly and create jobs, thus fueling the economy's growth. The American Recovery and Reinvestment Act of 2009 includes billions of dollars that may be used for green building, retrofitting, energy efficiency and renewable energy projects, including those in federal facilities, states, localities, and tribal areas; schools and housing. As a small business you may be able to benefit from stimulus projects and tax credits that are part of this recovery plan.

Central to the American Recovery Act is energy efficiency. Some experts estimate that energy efficiency in existing buildings can generate $160 billion in savings by 2030. Included are some selected highlights of the American Recovery Act and other tips to help you benefit from energy efficient practices.

Green Federal Facilities: The law provides $5.55 billion to the federal General Services Administration (GSA) for federal buildings, including $4.5 billion for measures to make GSA facilities "high-performance green buildings," as defined by the 2007 energy law. The law also requires that $4 million of funds provided be directed for GSA's Office of Federal High-Performance Green Buildings, which was created by the 2007 energy law.

Home Weatherization: The Act provides $5 billion for the federal Weatherization Assistance Program, which provides assistance to low-income families in weatherizing and improving the energy efficiency of their homes. To broaden the program's reach, the Act increases the income levels covered by the program (from 150 percent of the federal poverty level to 200 percent) and the amount of assistance available for each housing unit (from $2,500 to $6,500). The Act also increases the percentage of funding that may be used for training and technical assistance (from 10 percent to up to 20 percent).

Energy Efficiency in States and Localities: The Act provides $3.2 billion for the Energy Efficiency and Conservation Block Grant program, which was established by the 2007 energy law to provide support to states, localities, and tribal governments for energy efficiency and conservation programs and projects. Under the Act, $2.8 billion will be distributed by formula, and $400 million will be administered through competitive grants.

Public Housing: The Act provides $4 billion for the Public Housing Capital Fund, which provides funds to public housing agencies nationwide for the development, funding, and modernization of public housing developments. Under the Act, $3 billion of the funds will be distributed by formula, and $1 billion will be made available as competitive grants "for priority investments, including investments that leverage private sector funding or financing for renovations and energy conservation retrofit investments."

Green Jobs: The Act provides $3.95 billion for training and employment services under the Workforce Investment Act, including $500 million "for research, labor exchange and job training projects to prepare workers for careers in energy efficiency and renewable energy industries." Additionally, the bill provides $250 million for building, rehabilitating, and acquiring Job Corps Centers, of which up to 15 percent ($37.5 million) may be directed "to meet the operational needs of such centers, which may include training for careers in the energy efficiency, renewable energy, and environmental protection industries."

Tax Incentives for Energy Efficiency and Renewable Energy: Energy-Efficient Existing Homes: Existing federal law provides an individual tax credit of 10 percent of expenses for certain energy-efficient improvements to existing homes. Previously, the tax credit offered specific, capped amounts for qualified property. Under the bill, the amount of the credit has been raised to 30 percent for 2009 and 2010, and these technology-specific caps have been lifted and replaced with a $1,500 total cap on installations that may qualify for credit. Referenced efficiency levels have also been updated.

Renewable Energy Production Tax Credit: The bill extends the production tax credit for wind facilities by three years to 2013, and for solar, biomass, geothermal, landfill gas, trash combustion, hydropower, and marine and hydrokinetic to 2014.

Temporary Election of Investment Tax Credit: Recognizing the uncertainty of investor tax liability owing to the economic downturn, the new law temporarily permits eligible taxpayers to elect the investment tax credit instead of the tax credit for production of renewable energy for facilities placed in service after December 31, 2008. Additionally, the bill modifies the existing investment tax credit to eliminate the dollar caps for solar, geothermal, and small wind property.

Treasury Grants for Energy Investment: Acknowledging the decreased effectiveness of energy tax credits due to the economic downturn, the law permits taxpayers to apply for grants from the Treasury Department in lieu of certain renewable energy investment tax credits.

Advanced Energy Investment Tax Credit: The law creates a new 30% tax credit to be awarded through a competitive process for investment in facilities that manufacture "advanced energy property," for example, technologies for producing renewable energy, conserving energy, transmitting renewable energy, and reducing greenhouse gas emissions, among other purposes determined by the Secretary. Among other incentives, the bill provides increased authorizations for clean renewable energy bonds (increased by $1.6 billion) and qualified energy conservation bonds (from 800M to $3.2 billion). For a complete summary of the law, please visit: http://appropriations.house.gov/pdf/PressSummary02-13- 09.pdf.

While some of these opportunities may not be relevant to your business, it is important to know that "green" practices are becoming more "mainstream" and that there are ways you too can save money for reinvestment back into your business.

Making your business more sustainable and reducing energy costs is vital in this current economic climate. Now is the time to find out how you can participate in the American Recovery Act and bring "green" back to your bottom line.

For more information on the Chamber's Green Initiative contact Lauren Boitel at 702.641.5822 or at lboitel@lvchamber.com.