On September 20, 2013, the IRS released Notice 2013-60, which clarifies the IRS’s original guidance regarding the eligibility requirements for the production tax credit (PTC) and investment tax credit (ITC) for certain renewable and alternative energy facilities. Click here to view the new Notice. You can also take a look at Notice 2013-29 and my last post on it.
The IRS released Notice 2013-60 in response to questions regarding the following:
- The determination of whether a taxpayer satisfies the Physical Work Test or the 5% Safe Harbor, as described below;
- The applicability of the “master contract” provision; and
- The effect of a transfer of the facility after construction has begun
The American Taxpayer Relief Act of 2012 (ATRA) modified the definition of a qualified facility under section 45(d) of the Internal Revenue Code by replacing the placed in service requirement with a begin construction requirement. With this statutory change, a taxpayer will be eligible to receive the production tax credit (PTC) or the investment tax credit (ITC) with respect to a qualified facility if construction of the facility begins before January 1, 2014. Continue reading this entry