With nearly $94 million through incentives, grants and loan guarantees towards clean technology companies and projects, the American Recovery and Reinvestment Act (ARRA) contains a treasure trove of opportunity. The broad language in the Act has left room for interpretation that can be confusing to companies looking to benefit, according to law firm Stoel Rives.

A new report from Stoel Rives, “Show Me the Money: The Law of the Stimulus Package” attempts to clarify these clean technology boons. The majority of the direct investments of the ARRA are focused on energy efficiency (almost $26 billion), while the majority of tax incentives are towards renewable energy ($16.5 billion). Clean Renewable Energy and Energy Conservation bonds provide $4 billion for energy projects.

Renewable power developers have depended on Production Tax Credits, which have been extended to wind projects brought into service before the end of 2012 and other technologies before 2013. Investment Tax Credits, which have now been extended to the end of 2016, though geothermal ITCs have no expiration date. Project developers can now choose the ITC over the PTC, which provides greater overall subsidy and is a large upfront liquid sum. The PTC, however, can be advantageous in certain situations as it is an inflation-adjusted tax credit that is based off the amount of power generated by the facility.

Renewable projects have had to consistently traverse a “Valley of Death” during implementation (when they must wait for revenue), which the government has attempted to mitigate through the welcome addition of cash grants, which are needed by many companies that have lacked the necessary profits for the tax credits. In lieu of claiming ITCs or PTCs, companies can obtain treasury grants for up to 30% of the cost basis of qualified renewable energy projects.

Bonus depreciation of 50% is extended in the ARRA as well, which will allow these businesses to deduct equipment costs faster and temporarily reduce taxes, and -- hopefully for the economy's sake -- be more inclined to make capital purchases, according to Stoel Rives.

Other sources of funding for projects could include Department of Agriculture or through state programs like the Food Energy and Conservation Act, the Energy Independence and Security Act and the Energy Policy Act. The ARRA will work to curtail some of the decline in clean technology markets, but is not expected to provide the intended stimulus that many had called for to raise growth and investment in major markets such as solar and wind.