Annual report pursuant to Section 13 and 15(d)

Project Assets

v2.4.0.6
Project Assets
 12 Months Ended
Dec. 31, 2011
Other Assets [Abstract]  
Other Assets Disclosure [Text Block]
PROJECT ASSETS
Project assets consisted of the following at December 31, 2010 and 2011: 
 
2010
 
2011
Project assets
$
170,814,600

 
$
213,564,483

Less - accumulated depreciation and amortization
(25,667,125
)
 
(35,709,749
)
Project assets, net
$
145,147,475

 
$
177,854,734

 
In 2010 and 2011, the Company received $812,489 and $6,695,711, respectively, in grant awards from the U.S. Treasury Department (the "Treasury") under Section 1603 of the 2009 American Recovery and Reinvestment Act (the "Act"). The Act authorizes the Treasury to make payments to eligible persons who place in service qualifying renewable energy projects. The grants are paid in lieu of investment tax credits. All of the proceeds from the grants were used and recorded as a reduction in the cost basis of the applicable project assets. If the Company disposes of the property, or the property ceases to qualify as a specified energy property, within five years from the date the property is placed in service, then a prorated portion of the Section 1603 payment must be repaid. For tax purposes, the Section 1603 payments are not included in federal and certain state taxable income and the basis of the property is reduced by 50% of the payment received. Deferred grant income of $4,200,929 and $6,024,099 in the accompanying consolidated balance sheets at December 31, 2010 and 2011, respectively, represents the benefit of the basis difference to be amortized to income tax expense over the life of the related property.  
Depreciation and amortization expense on the above project assets for the years ended December 31, 2009, 2010 and 2011 was $5,260,821, $9,634,891 and $9,701,399, respectively, and is included in direct expenses in the accompanying consolidated statements of income and comprehensive income.