Project Finance NewsWire

February 2010

IN THIS ISSUE

DOE Moves on Loan Guarantees
Although progress has at times seemed painfully slow, the US Department of Energy is making progress toward issuing federal loan guarantees for renewable energy, transmission and other projects...

Treasury Cash Grant Update
The US Treasury Department is still wrestling with what it means to start construction of a new wind farm, solar project or other renewable energy facility.The answer is now not expected until March

Update: M&A Market
The past year was a difficult one for project developers looking to raise capital by selling projects or whole companies, but 2010 looks more promising...

Update: Tax Equity and Debt Markets
More than 400 people listened to a panel discussion called “Show Us the Money: Insights from Active Tax Equity Investors and Lenders” at the fall finance conference of the American Wind Energy Ass...

Cross-Border Renewables—Baja to California
The high demand in California for electricity from renewable energy is creating opportunities for developers to build projects along the Baja peninsula in Mexico and then export the electricity ac...

Environmental update
Many wind developers are asking whether they need “incidental take” permits after a decision in December by a federal district court in Maryland ...


IN OTHER NEWS

President Obama
President Obama asked Congress, in the budget he submitted on February 1, to extend a 50% “depreciation bonus” for another year through December 2010...

Uncertain Tax Positions
UNCERTAIN TAX POSITIONS would have to be identified on a schedule filed with corporate tax returns in the future under a new Internal Revenue Service proposal.

The 80-20 Test
The 80-20 test may be being used incorrectly, an IRS official said...

State Tax Credit
State tax credit deals were helped by a US Tax Court decision in December...

Waste
Waste may be about to get a new definition for US tax purposes...

A US Utility
A US utility that had a 10-year tale of woe in what looks like China was told its losses were long-term capital losses — not ordinary losses. Capital losses are much harder to deduct...

Disguised Sales
Disguised sales are a risk, especially if the parties are trying to come close economically to a sale without triggering taxes...

Grants
GRANTS that a state entity paid to people whose homes were destroyed by a natural disaster to help them buy new homes had to be reported as income, the IRS said in a private ruling.

Reflective Roof Surfaces
Reflective roof surfaces that are installed alongside photovoltaic cells are considered part of the solar equipment rather than the roof, the IRS said in a private ruling...

Minor Memos
The Wyoming governor asked the state legislature on February 1 to impose a 0.3¢ tax per kilowatt hour of electricity generated from wind farms in the state .