Washington, D.C. United States [RenewableEnergyWorld.com] Project numbers and developer feedback indicate that the economic stimulus package is on the right path to bolster activity within the wind industry. On July 9, the U.S. Treasury Department and U.S. Department of Energy released the guidance for how wind farm developers can access cash grants in lieu of the investment tax credit. The grants, which were part of the American Reinvestment and Recovery Act (ARRA, also known as the stimulus bill), are expected to help get wind projects built while capital markets remain difficult. The program began accepting applications at the end of July. Although it is still too early to get an accurate read on how the Treasury grant program and the other stimulus bill provision will affect the wind industry, it is clear that the law is keeping the industry alive during difficult economic times.ARRA Understood Provisions in ARRA that benefit new wind power project development include an extension of bonus depreciation through 2009, the three-year extension of the production tax credit (PTC) (2010-2012), and the ability to take an up-front 30% investment tax credit (ITC) instead of the PTC and, if desired, take an equivalent cash grant from Treasury in lieu of the ITC.The grants are designed to temporarily replace tax credits which have been major factors in the continued growth in wind and other renewable energy projects. Third-party investors with a large tax appetite or developers with access to large balance sheets were a key part of wind project financing. Such investors normally partner with developers who have limited tax liability themselves and help them monetize the tax credit. However, due to the recession, there has been limited tax equity available from investors and developers with large balance sheets, making it difficult to monetize tax credits and thereby rendering tax-based incentives such as the PTC almost useless as an investment incentive. As revenues for investors and developers have declined with the recession, so has their tax liability. The availability of the temporary Treasury grant program allows projects to continue to use the value of the incentive by removing the link between the incentive and tax liability.To be eligible, a wind project must be placed in service either between January 1, 2009, and December 31, 2010 (regardless of when construction begins) or after 2010 but before the credit termination date (for large wind, January 1, 2013; for small wind, January 1, 2017) if construction of the property begins between January 1, 2009, and December 31, 2010. Applications must be filed online by going to https://treas1603.nrel.gov/. For more information, see: http://www.treasury.gov/recovery/1603.shtml. ARRAs ImpactAWEA reported in late July that the U.S. wind energy industry installed 1,210 MW of new power generating capacity in the second quarter, bringing the total added this year to just over 4,000 MW. In addition to what has been commissioned this year, over 5,500 MW have been reported as under construction for completion later this year or early next year. New wind project announcements have also been picking up. In addition to what is under construction, at least another 5,000