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Section 1603 Grant Program Application Services

Reznick Group offers a comprehensive menu of services related to Section 1603 grants made available under the American Recovery and Reinvestment Act of 2009.

Pre-Grant Application Advisory Services
As a potential Section 1603 grant applicant, it is critical that you are fully aware of all program requirements, limitations, and deadlines. Reznick Group offers Section 1603 pre-grant application advisory services on eligible basis issues. We can help determine if your project will meet the requirements stipulated in the grant guidance documentation once your application is submitted. We will also advise on the optimal timing for your application submission.

Grant Application Advisory Services
The Section 1603 grant application is internet-based and designed to be user-friendly. However, there are a number of required certifications and verifications of expenditures and operation. These vary according to the type of renewable energy property contained in the project.  There are also supporting materials and certifications that must be submitted as part of your grant application. The following list illustrates those that our renewable energy team can help with:

Independent Accountant Certification
A certification of the cost structure of a renewable energy property is required for all grant applications with a cost basis exceeding $500,000.

• If you are applying for a payment of $1 million (eligible cost basis exceeding $3.33 million) or more for a specified property, you must submit an independent accountant's examination opinion attesting to the accuracy of the costs claimed as the basis of the property
• For requested payments of less than $1 million (eligible cost basis greater than $500,000 but less than $3.33 million) you may submit a report of Agreed Upon Procedures (AUP) with your application. The report may be submitted in lieu of an examination report, but it must be prepared by an independent accountant.

Reznick Group has delivered both examination opinions and Agreed Upon Procedures reports for many types of clients and completes more than 300 cost certifications annually under many federal and state programs.

Assessment of Leased Property Value
A lessor eligible to receive a Section 1603 payment with respect to a property may elect to pass-through the Section 1603 payment to a lessee. An independent assessment of the fair market value on the date the property is transferred to the lessee must be conducted under the requirements of the grant program. Additionally, if the lessee is applying for a payment as part of a sale leaseback transaction. an independent fair market value assessment should also be completed.

Placed in Service Certification
For property eligible for a Section 1603 grant, documentation must be provided to demonstrate that the property has been placed in service. An independent third party must be used to certify that the equipment has been installed, tested, and is ready and capable of being used for its intended purpose.

Safe Harbor Compliance Testing
An applicant may treat physical construction as having started if more than 5 percent of the total cost has been incurred or paid. Reznick Group can provide a “5% test” of total costs to tell if you are in compliance with the economic performance standards of IRC section 461(h).

Other Application and Registration Services
Grant applicants must apply for several identifying data elements including a Data Universal Numbering System (DUNS) number from Dun and Bradstreet. They are also required to register with the Central Contractor Registration (CCR). Reznick Group can provide grant advisory services to ensure all required applications and registrations are fulfilled.