EDP Renovaveis to benefit from US cash grant programme extension

(ADPnews) - Dec 21, 2010 - Portuguese green energy firm EDP Renovaveis (ELI:EDPR) will benefit from the extension of the US "cash grant in lieu of investment tax credit" for the sector.

Last Friday, the US President Barack Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which includes a one-year extension of the investment tax credit (ITC) cash reimbursement programme, EDP Renovaveis said in a filing with Portugal's bourse regulator CMVM on Monday.

With the extension of the above mentioned programme, wind energy developers can now apply for cash reimbursement in lieu of the 30% ITC, for projects whose construction starts by December 2011 and whose operations begin until December 2012.

It was also approved a 100% depreciation bonus on new equipment starting activities between September 8, 2010 and December 31, 2011, allowing businesses to depreciate the entire cost of the project (less 50% of the ITC) in the year when it is placed in service.

All new wind farms of EDP Renovaveis planned for the 2011-2012 period are expected to take advantage of the ITC cash reimbursement programme.

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