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DENVER, CO, Tuesday, March 3,
2009, NACEL Energy Corporation (OTC BB: "NCEN") ("NACEL
Energy"), a wind power company in business to generate clean, renewable
energy, today provided guidance to shareholders and interested
parties, concerning the impact of the American Recovery and
Reinvestment Act of 2009 (the "Stimulus"), signed into law by
President Obama in Denver on February 25, 2009, on the Company's
Blue Creek, Channing Flats, Swisher and Hedley Pointe wind power
projects, all underway in the Texas Panhandle, as well as the
Company's pipeline of new wind projects in feasibility, in three
other States.
Under present Federal law, an income tax credit
of 2.1 cents/kilowatt-hour, indexed for inflation, exists for the
production of electricity from utility class wind turbines.
This incentive, termed the renewable energy production tax credit
(PTC), was created under the Energy Policy Act of 1992. The Stimulus
legislation signed into law by Pres. Obama included a three-year
extension of this PTC. Consequently, the 2.1 cents/kilowatt-hour tax
credit may be applied to all NACEL Energy's existing and proposed
wind power generation projects, through the legislation's new
expiration date of December 31, 2012.
However, the most important aspect of the
Stimulus law is the inclusion of a new option to select a 30%
investment tax credit (ITC), up front, in lieu of the PTC.
This option is available to NACEL Energy for all wind power
generation facilities placed in service by the Company in 2010, and
also for facilities placed in service before 2013, if construction
begins before the end of 2010.
Further, the legislation enables the ITC to
ultimately be converted to a direct grant from the
Department of Treasury, upon the commencement of commercial
operations of the Company's wind facilities. The legislation
requires the Treasury Department to pay this grant, equal to 30% of
the construction cost of the applicable wind projects, directly to
NACEL Energy, within 60 days of the Company's application.
NACEL Energy Chief Executive Officer,
Brian Lavery, stated:
"The impact of the American Recovery and
Reinvestment Act on NACEL Energy's expected cash flow from our four
Texas projects, now underway, is profoundly positive. The Company
will additionally endeavor to advance our three wind project
opportunities in feasibility, in order to fully capitalize on the
provisions of this new legislation." |
