This is the anouncement many have been waiting for with anticipation. The US Treasury and the Depertment of Energy have announced funds in excess of USD 3 billion for renewable energy projects, as part of the Recovery Act. The program will provide direct payments in lieu of tax credits for the support of an estimated 5000 biomass, solar, wind and other renewable energy projects. Before January 1, 2009 companies filed for tax credit to cover a part of their renewable energy project costs, but in order to qualify for direct payment now, these comapanies will have to forgo tax credits down the line in favor of immediate reimbursement of a part of the property expense.

In order to make things happen faster, the Treasury and Dpertment of Energy have made public the terms and conditions, guidance, and a sample application on the Treasury Department website, so companies can prepare successful applications in advance of the official launch of the web-based application which will come online in the coming weeks.