The Department of the Treasury has responsibilities pursuant to the American Recovery and Reinvestment Act of 2009 (Recovery Act). Among those responsibilities are several programs, including the 1603 Program: Payments for Specified Energy Property in Lieu of Tax Credits.
Program Description
The Section 1603 program was created as part of the American Recovery and Reinvestment Tax Act of 2009 to increase investment in domestic clean energy production. Under Section 1603 the Department of the Treasury made payments in lieu of investment tax credits to eligible applicants for specified energy property used in a trade or business or for the production of income. The purpose of the 1603 payment was to reimburse eligible applicants for a portion of the cost of installing the specified energy property. Specified energy property includes solar, wind, geothermal, biomass, fuel cells, hydropower, combined heat and power, landfill gas, municipal solid waste, and microturbine property.
Applicants were required to submit a completed application containing detailed information about the project, as well as supporting documentation demonstrating that (1) the property was eligible, (2) the property had been placed in service, and (3) the requested payment amount was accurate.
Program Results
The Section 1603 Program has disbursed over $26 billion to help fund 109,766 clean energy projects that are estimated to produce enough clean energy to power over 8.5 million homes. The awards vary in size ranging from $180.00 to over $500 million and include projects located throughout the United States and the U.S. Territories. For more information see the Section 1603 Program Overview.
Ongoing Annual Report Requirements
In signing the Terms and Conditions, recipients of Section 1603 awards agree to submit a performance report for 5 years along with documentation of the annual production via the 1603 online system. The performance report is due annually, 21 days after the anniversary of the date the energy property was placed in service. Applicants receive a reminder notification via email 30 days before the report is due.
To access the electronic reporting system, go to the Treasury 1603 Sign on/Registration page, and log in with your user name (the email address you registered with) and password.
For assistance in using the 1603 online system go to 1603 Program Online System Guide.
For assistance with the annual report please refer to the Sample Annual Report and the list of Recommendations for Annual Report Production Documentation or email 1603Questions@treasury.gov.
Failure to submit the annual performance report is a disqualifying event and may result in recapture of a portion of the award.
Program Documents
Guidance
Terms and Conditions
Sample Application
Assignment Information
Notice of Assignment
Accountant’s Certification
Instructions and Example Findings for the AUP Report
Begun Construction Applicant Checklist
1603 Program Online System Guide
Evaluate Cost Basis for Solar Photovoltaic Property
FAQs – General
Frequently Asked Questions about the 1603 program
FAQs – Begun Construction
For energy properties that were not placed in service in 2009, 2010, 0r 2011, an eligibility requirement of the 1603 program was that construction of the energy property began in 2009, 2010, or 2011.
Frequently Asked Questions about the construction start date requirement.
Questions
You may email questions to 1603Questions@treasury.gov.
Awards
Thank you for your interest in the 1603 program.