The US Department of Treasury and the Department of Energy (DoE) have released guidance on the tax treatment of those receiving smart grid grants, determining that Smart Grid Investment Grants to corporations are non-taxable.
“By clarifying the tax treatment of Smart Grid Investment Grants, we are ensuring that their full impact is felt in the communities where these investments are being made,” says Treasury Assistant Secretary for Management, Dan Tangherlini.
Katherine Hamilton, President of the GridWise Alliance, welcomes the tax clarification: “Now these smart grid technologies can be deployed and begin doing what they are intended for – stimulating the economy.”
The Smart Grid Grant
The US$3.4bn Smart Grid Investment grant programme is the largest single energy grid modernisation investment in US history. Through the programme, 100 private companies, utilities, manufacturers, cities and other partners are receiving funding to implement a broad range of technologies spurring the transition to a smart grid.
According to awardees, the smart grid projects could create tens of thousands of jobs.