Mary Sennes
Mary Sennes is an associate of the firm practicing in the Corporate group. She provides advice and assistance to clients in a variety of business development transactions including mergers and acquisitions, public and private offerings of securities and contract negotiations. Mary's experience ranges from complex billion dollar merger and acquisition transactions to counsel for start-up companies. Mary works with attorneys in specialty areas throughout the firm to ensure comprehensive and efficient solutions for her clients.
House Passes Algae-based Renewable Fuel Promotion Act of 2010
On September 28, 2010, the House of Representatives passed the Algae-based Renewable Fuel Promotion Act of 2010 (H.R. 4168). The Act amends the Internal Revenue Code to (1) expand the definition of "cellulosic biofuel" to include algae-based biofuel for purposes of the cellulosic biofuel producer tax credit; and (2) provide for accelerated depreciation of property used in the production of algae-based biofuel. The legislation now will proceed to the Senate. For the complete text, please click here.
Minnesota Angel Investment Tax Credit
Governor Tim Pawlenty signed into law the Small Business Investment Tax Credit, also known as the “Angel Tax Credit,” on April 1, 2010. The Angel Tax Credit is expected to stimulate investment in Minnesota businesses utilizing or developing new technologies, including those related to renewable energy and energy efficiency and conservation. Qualified investors are eligible for a 25 percent individual tax credit (maximum of $125,000 per year per individual or $250,000 per year for those married and filing jointly) for an investment made in a qualified small business. A total of $11 million in credits is currently allocated for 2010. The Minnesota Department of Employment and Economic Development (DEED), which will administer the program, recently made available the application requirements and certification forms on its website.
Qualified Investors
The following is a general list of criteria for investors to consider in whether they may qualify for certification under the Angel Tax Credit program:
- Be a natural person.
- Meet the requirements of an accredited investor under Regulation D.
- If not an accredited investor, be a non-accredited investor investing in exempt filings per Minn. Stat. 80A.46 (13) or (14) or Minn. Stat. 80A.50 (b).
- Not receive more than 50 percent of their annual gross income from the business.
- Be certified by DEED before investment is made. Non-accredited investors making exempt transactions may file for certification within 30 days of making investment. There is a certification filing fee of $350.
- Make a minimum qualifying investment of $10,000. Three or more investors may join to create a fund. Funds have a minimum investment of $30,000, which may be divided among investors as the fund wishes.
Qualified Businesses
A qualified business must be engaged in technological innovation in Minnesota through the use or research and development of proprietary technology in specified “qualified high technology fields” which include aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology, cellulosic ethanol, information technology, materials science technology, nanotechnology, telecommunications, biotechnology, medical devices, pharmaceuticals, diagnostics, biologicals, chemistry, or veterinary science. The following is a general list of criteria for businesses to consider in whether they may qualify for certification under the Angel Tax Credit program:
- Be headquartered in Minnesota.
- Have a minimum of 51 percent of employees and 51 percent of payroll in Minnesota.
- Have fewer than 25 employees.
- Pay employees annual wages of at least 175 percent of poverty level, currently $18.55 per hour. Does not apply to business’ executives, officers, board members, 20 percent-plus owners.
- Not have been in operation for more than 10 years.
- Not previously have received private equity investments of more than $2 million.
- Not have been disqualified from investment under Minn. Stat. 80 A.50 (b)(3) Small corporation offering registration disqualifications.
- Not have generated more than $4 million in investments that have received an Angel Tax Credit. The Angel Tax Credit is capped at $1 million per business.
- Be certified by DEED before investment is made. The certification filing fee is $150.
For more information on the Minnesota Angel Investment Tax Credit, please visit the Angel Tax Credit section of the DEED website.
Growing America's Fuel - President Obama Announces Strategies to Achieve U.S. Biofuels Goals
President Obama met today with a bipartisan group of governors from around the country and announced a series of steps the administration is taking to boost biofuels production in the United States. The President’s Biofuels Interagency Working Group released a report spelling out ways to promote the development of the biofuels industry in the United States in connection with the long-term renewable fuels standard of 36 billion gallons per year by 2022. The report, Growing America’s Fuel, focuses on government strategies to achieve the renewable fuels standard and the target for 100 million gallons of cellulosic biofuels in 2010. The strategies include supporting the development of first and second generation biofuels with the additional focus on accelerating third generation biofuels development and supporting feedstock research and demonstration. The report addresses the use of regional supply chain systems to ensure all fuels produced are compatible with the U.S. transportation fuel infrastructure.
President Obama also announced the creation of an Interagency Task Force on Carbon Capture and Storage. Representatives from the DOE and the EPA will co-chair the task force which will develop a plan for affordable carbon capture and storage technology in the next ten years, with a goal of bringing five to ten commercial demonstration projects on line by 2016.
Insights from Stoel Rives' Webinar on The Stimulus Bill: Structured Tax Incentives
During yesterday's webinar entitled “The Stimulus Bill: Structured Tax Incentives” Greg Jenner (Stoel Rives LLP attorney), Victoria McDowell (Chief Administrator of the Treasury ITC Grant Program), and Kevin Pearson (Stoel Rives LLP attorney) walked webinar participants through the background of the American Recovery and Reinvestment Act grant program and the application process.
Ms. McDowell provided insightful comments about to the application process, including the timing of submitting an application and the importance of including all supporting documentation. Ms. McDowell stated that Treasury is in the process of preparing additional guidance on the “beginning of construction” requirement. Currently, either physical work of a significant nature must have begun to meet the requirement or, under a safe harbor provided by Treasury, an applicant must have paid or incurred more than 5 percent of the total cost of the project (excluding the cost of land and any preliminary activities). Ms. McDowell’s comments suggested that forthcoming revisions from Treasury will further simplify the “beginning of construction” requirement. For more information on this and other key legal issues related to the Stimulus Bill, please join us for these future webinars:
- November 18, 2009
Grants & Applications – The Process and the Pitfalls - November 19, 2009 (just added)
Follow up Webinar on Structured Tax Incentives – The 1603 Grant Program - December 2, 2009
The DOE Loan Guarantee Program Long-Term and Ongoing
Each session will be 60 minutes and feature a question & answer period. The panels will also respond in real time to questions submitted by listeners.
REGISTER HERE: http://www.stoel.com/webcasts
Clean Energy Jobs and American Power Act Promotes Advanced Renewable Fuels
The Chairman’s Mark of the Clean Energy Jobs and American Power Act contains proposed language that would clarify that algae-based and other advanced fuels are included in the definition of biofuels for purposes of the Renewable Fuel Standard. The Environment and Public Works Committee started legislative hearings today on the Clean Energy Jobs and American Power Act.
LAW OF ALGAE AVAILABLE NOW
We are pleased to announce that the first edition of THE LAW OF ALGAE is available now. The LAW OF ALGAE is a guide to the business and legal issues in developing a commercial scale algae biofuels facility. We are introducing THE LAW OF ALGAE in an on-line “wiki” format where the contents can be accessed at www.LawOfAlgae.com. Because the processes, technologies, and issues are changing rapidly with the commercialization of algae, the wiki format enables us to update the book frequently to bring you the most current information.
THE LAW OF ALGAE is one in a series of “LAW OF” books that Stoel Rives LLP has produced over the past five years. The others include THE LAW OF WIND—A Guide to Business and Legal Issues, LAVA LAW—Legal Issues in Geothermal Energy Development, THE LAW OF BUILDING GREEN—Business and Legal Issues of Sustainable Real Estate Development, THE LAW OF OCEAN AND TIDAL ENERGY—A Guide to Business and Legal Issues, LEX HELIUS: THE LAW OF SOLAR ENERGY—A Guide to Business and Legal Issues, The Law of Cooperatives, and SHOW ME THE MONEY—The Law of the Stimulus Package. If you are interested in any of these books, please visit our website at http://www.stoel.com/lawofseries.aspx to request a copy.
New Minnesota Solar Power Incentives
Minnesota politicians held a news conference yesterday on the state capitol mall to provide an overview of recent legislation relating to solar energy projects. Minnesota has allocated $14.5 million in stimulus money for renewable energy projects, with a portion flagged for solar projects to encourage the installation and use of solar-powered systems. Another piece of legislation gives utilities the opportunity to double their commitments to solar energy projects under the Conservation Improvement Program currently in place. Representatives from Xcel Energy Inc. (Xcel), which serves more than 1.2 million customers in Minnesota, announced yesterday that they filed a $280 million plan with regulators to offer incentives for Minnesota customers to conserve energy, which could include installation of solar panels on homes and businesses. Under Xcel’s proposed “Solar Rewards Program,” Xcel would provide rebates to customers who install solar photovoltaic systems of up to 40 kilowatts on their premises.
$50 Million Allocated to Support Algae Research
As part of the DOE’s announcement last week to provide $786.5 million from the American Recovery and Reinvestment Act to accelerate advanced biofuels research and development, the DOE allocated $50 million to create an algae biofuels consortium to accelerate demonstration of algae biofuels. As many companies are working toward the commercialization of algae biofuels, this infusion of money into research and development will help to promote commercially feasible algae biofuels production.
Additionally, Prize Capital, LLC has announced the creation of a $10 million algae fuel prize that is focused on advanced algae biofuels technologies. While the final details of the competition have not been released, planning is underway.
