The purpose of the 1603 payment is to reimburse eligible applicants for a portion of the cost of installing specified energy property used in a trade or business or for the production of income. A 1603 payment is made after the energy property is placed in service; a 1603 payment is not made prior to or during construction of the energy property.
Change: Beginning July 30, 2012, the System for Awards Management (SAM) replaces the Central Contractor Registration (CCR). See Step 5 of the Placed in Service Applications and the Combined Applications sections below for information about SAM.
Since implementation, SAM has experienced performance issues. GSA has taken aggressive action to resolve these issues promptly. While registration in SAM is necessary to receive a 1603 payment, it is not necessary to submit an application. Applicants may use the time between application submission and award to complete their registration in SAM.
Effective October 1, 2012, the online Section 1603
system will undergo some changes. For applications that have been paid, you
will no longer be able to access or view your application or supporting documentation.
These changes are implemented to protect the integrity of all data within the
on-line system. If you wish to print your application that has been paid, you
may do so through September 30. These changes do not affect post award annual
report requirements and access.
IMPORTANT INFORMATION ABOUT THE SEPTEMBER 30, 2012 APPLICATION DEADLINE
The Section 1603 online system, https://treas1603.nrel.gov closes for new applications at midnight (HT) on September 30, 2012.
After September 30, 2012, the online system allows applicants to convert their previously submitted Begun Construction application to demonstrate that the energy property is placed in service. Applicants have 90 days from the placed in service date to convert. For example, a large wind applicant that submits a Begun Construction application prior to midnight on September 30, 2012 and places its property in service on December 1, 2012 has until midnight on March 1, 2013 to convert the Begun Construction application.
A Begun Construction application may only be converted once. Applicants with multiple projects must submit a Begun Construction application for each project by midnight on September 30, 2012.
To meet the submission deadline, the applicant must:
Submit through the online system, https://treas1603.nrel.gov (applications sent in by any other means, for example, by mail, are not accepted)
Respond to all the required sections of the application, including supporting documentation
Sign the application and the terms and conditions
If submitted successfully the applicant will receive a Treasury application number (TAN) in an email from the online system.
Thereafter, if the review team has questions or needs clarification, a reviewer will send to the applicant an email requesting information. Failure to meet the timeframe for submitting additional information will result in a rejection of the application.
Applications that were initially submitted before midnight on September 30, 2012 but have been withdrawn or suspended must be re-submitted by midnight September 30, 2012.
[Note to applicants who have already submitted the Begun Construction application (described in #2 below): When your energy property is placed in service, you may update the application as described in #2 below OR you may withdraw the Begun Construction application and submit a Combined application as described in #3 below. You do not need to wait for a response from Treasury to your Begun Construction application.]
Eligibility Deadlines
To be eligible, a property must be placed in service in 2009, 2010, or 2011 or placed in service after 2011 but only if construction of the property began during 2009, 2010, or 2011. Properties placed in service after 2011 must be placed in service by the credit termination date (see Guidance, page 5).
Types of Applications
A Placed in Service application is submitted for energy property that is complete and has been placed in service by the end of 2011.
A Begun Construction application is submitted for energy property that is placed in service after 2011 to demonstrate that construction of the energy property began during 2009, 2010, or 2011. After the energy property is complete and has been placed in service, the Begun Construction application may be updated to a Placed in Service application at the on-line system’s Application Control Panel.
A Combined application has both the Begun Construction and Placed in Service elements. Applicants may submit a Combined application when construction of the energy property began during 2009, 2010, or 2011 and the energy property is complete and has been placed in service before October 1, 2012.
Application Deadlines
For all properties placed in service in 2009, 2010, or 2011, the applicant must submit a Placed in Service application before October 1, 2012.
For all properties placed in service after 2011, the applicant must submit a Begun Construction or Combined application before October 1, 2012. If submitting a Begun Construction application, the applicant must update it to a Placed in Service application by the later of September 30, 2012 or 90 days after the energy property is placed in service. Or, if submitting a Combined application, the applicant must submit it by September 30, 2012.
FAQs – General
Placed in Service Applications – for energy property that has been placed in service
- Read the GUIDANCE, TERMS AND CONDITIONS, and SAMPLE APPLICATION.
- If you do not already have one, request a DUNS number by calling 1-866-705-5711. This is needed to complete section 3A of the application.
- Gather all of the documentation needed to complete section 6A of the application. Print the APPLICANT CHECKLIST to ensure you have all the required documentation.
- Complete the on-line Placed in Service Application and sign the Terms and Conditions at https://treas1603.nrel.gov.
Register with the System for Awards Management (SAM) at https://www.sam.gov/portal/public/SAM/. The SAM registration must be completed and active before a payment can be made.
For energy properties placed in service having a cost basis in excess of $500,000, an applicant must submit an
ACCOUNTANT’S CERTIFICATION with their application in section 6A.
Assignment of Payment to a Financial Institution
An applicant has the option of assigning the 1603 payment to a financial institution. This means that the 1603 payment does not go into the applicant’s account, rather it goes to the financial institution itself (perhaps for repayment of the construction loan). The 1603 payment cannot be assigned to an installer, contractor, or other non-financial institution.
For information on assigning a 1603 payment to a financial institution, click on these links:
Begun Construction Applications – for energy property on which construction began in 2009, 2010, or 2011
(Do not submit this application if your property will be placed in service by December 31, 2011.)
- Read the GUIDANCE, TERMS AND CONDITIONS, and SAMPLE BEGUN CONSTRUCTION APPLICATION.
- If you do not already have one, request a DUNS number by calling 1-866-705-5711. This is needed to complete section 3A of the application.
- Gather all of the documentation needed to complete section 6B of the application. Print the BEGUN CONSTRUCTION APPLICANT CHECKLIST to ensure you have all the required documentation.
- Complete the on-line Begun Construction Application at https://treas1603.nrel.gov/.
- Once the energy property has been placed in service, follow the steps above to submit the Placed in Service application.
Combined Applications – for energy property on which construction began in 2009, 2010, or 2011 and is placed in service by September 30, 2012
(This is an alternative to submitting a Begun Construction application and later updating it to a Placed in Service application.)
If you do not already have one, request a DUNS number by calling 1-866-705-5711. This is needed to complete section 3A of the application.
Register with the System for Awards Management (SAM) at https://www.sam.gov/portal/public/SAM/. The SAM registration must be completed and active before a payment can be made.
FAQs – Begun Construction
For energy properties not placed in service in 2009, 2010, or 2011, an eligibility requirement of the 1603 program is that construction of the energy property must begin in 2009, 2010, or 2011. These are
FREQUENTLY ASKED QUESTIONS and answers about how to meet this requirement.
Accountant’s Report for Begun Construction – 5% method and basis of $1+ million
An applicant may qualify as having begun construction by satisfying either the “physical work” or “5% of costs” method or both. These are described in the Guidance and FAQs.
For projects relying on the 5% of costs method and having a cost basis of $1 million or more the applicant must submit (in addition to other documentation described in the Applicant Checklist) a report from an independent accountant on the eligible costs of the energy property paid or incurred by December 31, 2011. This report may be in the form of one of the following:
- An Agreed-Upon Procedures (AUP) Report prepared by an independent accountant in accordance with AT Section 201, “Agreed-Upon Procedure Engagements” of the AICPA
- An Examination Report in accordance with AT Section 101, “Attest Engagements” (Statements on Standards for Attestation Engagements 10, as amended) of the AICPA
Annual Report
In signing the Terms and Conditions (#5), an applicant agrees to submit a performance report for five years. A report is due annually, 30 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.
- Read the SAMPLE ANNUAL REPORT.
- Gather the documentation needed to complete section 4.3 of the report.
- Complete the on-line annual report at https://treas1603.nrel.gov.
Online System Guide
For help with using the online system, please refer to the 1603 PROGRAM ONLINE SYSTEM GUIDE.
Questions
You may email questions to 1603Questions@treasury.gov.
Please note that the purpose of the 1603 mailbox is to answer questions regarding how to apply for the 1603 program and complete the annual report. This includes: how to submit an application and assist with updating an awardee’s contact information. We also answer general questions regarding applicant and energy property eligibility. We cannot, however, answer questions that are more appropriately answered by tax accountants, lawyers, and the Internal Revenue Service. This includes questions regarding what can and cannot be included in cost basis and whether or not certain business structures meet eligibility requirements. Also, we cannot confirm the eligibility for specific projects.
If you need technical support to up-load documents or other problems with the on-line system, you may email questions to treas1603@nrel.gov.
Evaluating Cost Basis for Solar Photovoltaic Property
The review of applications for a 1603 payment includes a determination as to whether the applicant has properly represented and calculated its cost basis. Here is information on the process used by the 1603 team to
EVALUATE COST BASIS and the principles that guide this process.
List of Awards
Here is a
STATUS OVERVIEW of the 1603 program that is updated from time-to-time.
Thank you for your interest in the 1603 program.