To be eligible for the Treasury 1603 grant program, companies must "begin construction" on their projects by December 31, 2011. Construction begins when a company either (a) incurs at least 5% of eligible project costs ("5% test") or (b) begins "significant physical work" in a plan of continuous construction. For potential applicants relying upon the 5% test, the important milestone is the date the costs are incurred. Where a project asset is produced, manufactured, or constructed for the applicant by another person, the cost of that asset is incurred when the property and/or services are provided to the applicant, under the "economic performance" test of Treas. Reg. §1.461-1. One notable exception to the economic performance general rule is Treas. Reg. §1.461-4(d)(6), which allows property or services that are reasonably expected to be provided within 3 1/2 months of the date of payment to meet the economic performance requirement when payment is made.