The American Reinvestment and Recovery Act (Public Law 111-5) was enacted in 2009 to promote economic recovery by creating jobs and investing in infrastructure. One such sector benefitted by the Act is renewable energy. In particular, Section 1603 of the Act appropriates funds for payments to qualified applicants who have put “specified energy property” into service during 2009, 2010 or 2011 (if construction began in 2009 or 2010). The payments are generally equal to 10% to 30% of the basis of the specified energy saving property, however, the applicants who receive Section 1603 payments are not eligible for the production or investment tax credits under Sections 45 and 48 of the Internal Revenue Code. Section 1603 payments may also be passed through to eligible tenants if the specified energy saving property will be owned by the tenant. But the time to take advantage of these payments is about to expire; while applications do not need to be filed until October 1, 2011, construction of a project must have commenced during 2009 or 2010 (even if the application has not yet been filed). Guidance and the application for the Grant program are available on the U.S. Department of Treasury’s web site here: 1603.shtml.