Potential Policy Options Related to Section 1603.

The article discusses policy options available to the Section 1603 grant program of the American Recovery and Reinvestment Act (ARRA) of 2009. It examines the implications of allowing the grant program to expire after December 31, 2011. It notes the issues connected with the U.S. Congress extending the grant program on a temporary basis. It explores the effect of modifying existing tax incentives including making changes to the production tax credit (PTC) and investment tax credit (ITC).