Capstone Gets Boost from U.S. Recovery Program

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Capstone Turbine Corp. said Tuesday that purchasers of its low-emission microturbine systems and similar products would eligible for reimbursement from the American Recovery and Reinvestment Act.

A joint program between the U.S. Department of the Treasury and U.S. Department of Energy will set aside an estimated $3 billion to help pay for the development of approximately 5,000 biomass, solar, wind, geothermal, fuel cell and similar projects. The government announced earlier this month that microturbine products also would be eligible.

The Recovery Act now authorizes the Treasury to make direct payments to companies that create and place in service renewable energy facilities starting January 1, Capstone said. Previously, companies could file for a tax credit to cover a portion of the renewable energy project’s cost.

Capstone shares were up 7 cents, or 10 percent, to 79 cents in midday trading on the Nasdaq.

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