Payments for Specified Energy Property In Lieu of Tax Credits
under the
AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009
TERMS AND CONDITIONS
1. Authority
Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 (Section 1603)
authorizes the United States Department of the Treasury (Treasury) to make payments to persons
who place in service specified energy property provided certain conditions are met.
2. Eligibility
a. The applicant is the owner or lessee of specified energy property that qualifies for funds under
Section 1603 and is the original user of the property.
b. Where the applicant is the lessee of the specified energy property, the owner of the specified
energy property has agreed, in writing, to the lessee being the recipient of the Section 1603
payment and has waived, in writing, its right to receive any payment under Section 1603 as well
as its right to claim a tax credit under section 45 and 48 of the Internal Revenue Code (IRC) with
respect to the property.
c. The applicant is not a federal, state or local government, or any political subdivision, agency
or instrumentality thereof; an organization that is described in section 501(c) of the IRC and is
exempt from tax under section 501(a) of the IRC; or an entity referred to in section 54(j)(4) of the
IRC.
d. The applicant is not a partnership or pass-thru entity that has a person described in section 2.c
above as a direct or indirect partner (or other holder of an equity or profits interest) unless this
person only owns an indirect interest in the applicant through a taxable C corporation.
e. The applicant is not a foreign person or entity unless it is a foreign person or entity that
qualifies for the exception in section 168(h)(2)(B) of the IRC.
3. Ongoing Representations and Obligations
a. The applicant understands that Treasury is relying on the accuracy of the information contained
in the application in making determinations with respect to the applicant’s eligibility for a Secti