The American Recovery and Reinvestment Act of 2009 created the Section 1603 Grant in Lieu of Tax Credit program for qualified renewable energy property ("Section 1603"). Under Section 1603, generally, the Secretary of the Treasury provided grants (as an alternative to "investment tax credits" issued pursuant to Section 48 of the Internal Revenue Code of 1986 ("IRC")) to eligible persons, who place in service qualified energy property and apply for such payments. Grants are awarded under Section 1603 to reimburse eligible applicants for a portion of the expense of such property. Section 1603 further provides that the amount of a grant with respect to any qualified energy property is the applicable percentage (either 30% or 10%) of the basis of such property.
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