Common use of Disqualified Persons Clause in Contracts

Disqualified Persons. An applicant is treated as a “disqualified person,” meaning it is disqualified from receiving a cash grant if, at the time it applies for the cash grant, it is (a) a federal, state or local government, including any political subdivision, agency or instrumentality thereof (b) an organization that is described in section 501(c) of the Code and is exempted from tax under section 501(a) of the Code, (c) an entity referred to in paragraph (4) of section 54(j) of the Code or (d) a partnership or other pass-through entity (including a single-member disregarded entity) any direct and indirect partner (or other holder of an equity or profits interest) of which is described in clauses (a) through (c). However, if an otherwise disqualified person owns its interest in specified energy property entirely through an entity taxable as a corporation, no disqualification will apply.