To be eligible for a 1603 Treasury Cash Grant, a “begun construction” application was required to be submitted prior to October 1, 2012. Further, wind projects must have been placed in service prior to January 1, 2013, and solar projects must be placed in service prior to January 1, 2017. Treasury’s rules provide that an application at this stage in the program must be submitted within 90 days of the project being placed in service.
Some grant applicants were having trouble with this deadline. For instance, some applicants struggled with determining the precise date their project was placed in service, because the test for placement in service is a multi-factor test that has subjective elements.1 Treasury has generously implemented an automatic 90-day extension. Here is a link to Treasury’s web site http://www.treasury.gov/initiatives/recovery/Pages/1603.aspx. Now, from the placed in service date, an applicant that requests the extension, has up to 180 days to submit an application.
In another accommodation, Treasury’s web site provides that the 90 extension may be requested anytime within 180 days from the placed in service date.2 Therefore, even if more than 90 days have elapsed since the project was placed in service, an applicant may request an extension. Such an extension would provide the applicant with a 180 days in total from the placed in service date to submit a final grant application.
The extension must be requested by updating pertinent the grant application; this is done on Treasury’s web site. Once requested, approval of the extension is automatic. Treasury has cautioned that only one extension is available per application, so after the 90-day extension there are no more reprieves.
1 See Rev. Rul. 76-256, 1976-2 C.B. 46 and Rev. Rul. 76-428, 1976-2 C.B. 47. The standard typically used by practitioners is that the project must be connected and synchronized to the grid and capable of producing and delivering commercial quantities of electricity on a regular basis. The exact boundary of what constitutes production of “commercial quantities” of electricity is less than clear.
2 Treasury’s web site provides: “This 90 day time period may be extended for an additional 90 days (you can obtain this extension, while updating the application, at any time prior to the expiration of 180 days from the placed in service date). “