Category Archives: Tax

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IRS Issues New Guidance on Beginning Construction Requirement For ITC

The IRS recently issued Notice 2018-59 (the “Notice”) which provides clarification to “beginning of construction” for taxpayers seeking to take advantage of the section 48 renewable electricity investment tax credit (ITC) for solar and other renewable energy facilities including qualified fuel cell, combined heat and power, qualified small wind and geothermal heat pump. The Notice largely follows … Continue reading this entry

IRS Releases 2018 PTC Amounts

The IRS just published its annual notice that provides the inflation adjustment factors and reference prices used in determining the amount of the section 45 production tax credit (PTC) for the production of renewable energy and refined coal. The credit for the production of renewable energy from wind, closed-loop biomass and geothermal facilities remains at … Continue reading this entry

Early Morning Budget Deal Brings the Return of Previously Expired Short-Term Tax Breaks

Early this morning, the House and Senate voted to pass a budget deal that included $17 billion in tax provisions, ending a short overnight government shutdown.  The bill (H.R. 1892) extends the investment tax credit (ITC)  to “orphaned” technologies that were not included in the extension of ITC for solar property in 2015. The bill makes … Continue reading this entry

President Trump Signs Tax Cuts and Jobs Act into Law

Today, President Trump signed the $1.5 trillion Tax Cuts and Jobs Act (TCJA) into law, marking the first major overhaul of the U.S. tax code in over 30 years. As we discussed in our prior blog post here, the TJCA is a mixed bag for the renewable energy industry. On one hand, it cuts the tax … Continue reading this entry

BREAKING NEWS: Congress Sends Tax Cuts and Jobs Act to President Trump’s Desk for Signing

The Tax Cuts and Jobs Act (TCJA) has been passed by both houses of Congress and is now set to be signed into law by President Trump. The vote was 224-201 in the House with all the Democrats joined by twelve Republicans voting “no” and 51-48 in the Senate along party lines. Although the TCJA … Continue reading this entry

House Passes Tax Cuts and Jobs Act

Yesterday, the House passed the Tax Cuts and Jobs Act (TCJA) along party lines. As we discussed in our prior blog post here, the TCJA extends the ITC with respect to certain “orphaned” technologies (e.g., fiber optic solar, fuel cell, small wind, micro turbine, CHP, and thermal energy) but it slashes the PTC down to … Continue reading this entry

Ways and Means Clarifies Wind Can Rely on Start of Construction Safe Harbors

Last week we wrote in our blog that the House Tax Cuts and Job’s Act (TCJA) appeared to override IRS guidance that wind developers relied on to show that they started construction on a wind farm in order to take advantage of the PTC. In response to industry groups, the Ways and Means Committee clarified … Continue reading this entry

Senate Tax Proposal Provides Encouraging News for Wind

Senate Finance Committee Chairman Orrin Hatch recently released his Chairman’s Mark of the Tax Cuts and Jobs Act (Senate Proposal) in advance of the Senate Finance Committee markup scheduled to begin today. The Senate Proposal differs from the House version of the Tax Cuts and Jobs Act (House Proposal), which we discussed in our blog post here. … Continue reading this entry

The GOP’s Tax Cuts and Jobs Act Includes Changes Impacting the Renewable Energy Industry

On November 3rd, House Ways and Means Committee Chairman Kevin Brady (R. Tex.) released the “chairman’s mark” to H.R. 1, the “Tax Cuts and Jobs Act” (TCJA). The TCJA represents the most extensive rewrite of the Internal Revenue Code in the last 30 years. The Ways and Means Committee is expected to begin reviewing the … Continue reading this entry

FERC Confirms that FPA Section 203 Approval is Not Required for Tax Equity Investment

Federal Energy Regulatory Commission (“FERC”) has issued a declaratory order confirming that no approval under Section 203 of the Federal Power Act (“FPA”) is required in connection with the transfer or issuance of passive tax equity interests in public utilities or public utility holding companies. Under Section 203, FERC’s prior authorization is required “if a … Continue reading this entry

IRS Releases 2017 PTC Amounts

U.S. Department of Commerce Sets Stage for New Countervailing Duties on Chinese Solar Panels
The IRS just published its annual notice that provides the inflation adjustment factors and reference prices used in determining the amount of the section 45 production tax credit (PTC) for the production of renewable energy and refined coal. The credit for the production of renewable energy from wind, closed-loop biomass and geothermal facilities is 2.4 … Continue reading this entry

IRS Issus New Guidance on the Beginning of Construction Safe Harbor For Renewable Energy Projects

The IRS recently issued Notice 2017-4 (the “Notice”) which makes two important changes to its “beginning of construction” rules for taxpayers seeking to take advantage of the section 45 renewable electricity production tax credit (PTC) for wind and other renewable energy facilities including geothermal, biomass, landfill gas and certain hydropower and marine hydrokinetic energy projects. Under prior IRS … Continue reading this entry

IRS Revokes Favorable PLR Concerning Ability of Tribe to Pass ITCs to Lessee in Master-Tenant Structure

In recently released Private Letter Ruling 2016-40-010 (the new ruling), the IRS prospectively revoked PLR 2013-10-001 (the original ruling), concluding that a Native American tribe may not elect to pass investment tax credits (ITC) associated with renewable energy assets on reservation lands to a taxable entity under Section 50(d)(5) of the Tax Code.  [Click here … Continue reading this entry

IRS Issues Proposed Rules on Income Inclusion under Section 50(d)(5)

The IRS just published long-awaited temporary regulations under section 1.50-1T governing the section 50(d)(5) income inclusion rules. These rules apply to lessees of investment credit property when the lessor elects to treat the lessee as having acquired the property for its fair market value and pass through the investment tax credit available under section 46 … Continue reading this entry

IRS Issues New Notice Extending Beginning of Construction Safe Harbor

Yesterday, the IRS issued Notice 2016-31 (the “Notice”) which revises previous guidance on satisfying the “beginning of construction” test in order to take advantage of the section 45 renewable electricity production tax credit (PTC) for wind and other renewable energy facilities including geothermal, biomass, landfill gas and certain hydropower and marine hydrokinetic energy projects. The … Continue reading this entry

Just in Time for the Holidays: President Obama Signs ITC and PTC Extension Into Law

On Friday, President Obama signed into law the bipartisan $1.1 trillion Consolidated Appropriations Act of 2016 and the $680 billion Protecting Americans From Tax Hikes (PATH) Act of 2015, better known as the omnibus and tax reform bill and the tax-extenders bill, respectively. As we discussed in detail in our prior blog post here, the … Continue reading this entry

Breaking News: Congress Set to Vote On Spending Bill Including 5 Year Extension of ITC and PTC

Congressional leaders reached a much anticipated bi-partisan agreement in an omnibus appropriations bill that includes an extension (with phasedowns) of the section 48 investment tax credit (ITC) for solar energy property and section 45 renewable electricity production tax credit (PTC) for wind. (The 2000+ page bill is available here.) A separate tax extenders bill (available … Continue reading this entry

IRS Releases Favorable Guidance for Individual Investors in Community Solar to Claim Section 25D Tax Credit

The IRS recently issued a Private Letter Ruling (PLR) clarifying that an individual investor in a net-meted community solar project may claim the federal residential Investment Tax Credit (ITC) under Section 25D of the Internal Revenue Code. (A copy of the PLR is available here.) The PLR is also significant because it appears to eliminate a … Continue reading this entry

IRS Issues Notice 2015-25 Extending Safe Harbor for Continuous Construction in Order to Take Advantage of Renewable Energy Tax Credits

Yesterday, the IRS issued Notice 2015-25, which updates the guidance in Notices 2013-29,  2013-60, and 2014-46. These Notices provide that a taxpayer can show that it has “begun construction” of its qualified renewable energy facility by December 31, 2014 for purposes of taking advantage of the section 45 renewable electricity production tax credit (PTC) or the … Continue reading this entry

IRS Releases Guidance on Performance and Quality Standards for Small Wind Energy Property

The IRS recently released Notice 2015-4 (the Notice), which provides performance and quality standards that small wind energy property (defined under section 48(c)(4) of the Code as property utilizing a “qualifying small wind turbine” with a nameplate capacity of not more than 100 kilowatts (kW)) must meet to qualify for the section 48 investment tax … Continue reading this entry

Production Tax Credit Extended for Renewable Projects Beginning Construction in 2014

On December 19, 2014, President Obama signed into law the Tax Increase Prevention Act of 2014 (H.R. 5771).  H.R. 5771 includes a retroactive one-year extension of the section 45 renewable electricity production tax credit (PTC) for wind and other renewable energy facilities including geothermal, biomass, landfill gas and certain hydropower and marine hydrokinetic energy projects. Taxpayers … Continue reading this entry

Gov. Cuomo Signs Law Extending Real Property Tax Abatement for Solar Power Installation

Governor Cuomo has signed into law a bill that extends real property tax breaks for installing electricity-generating solar panels on New York City buildings effective September 23, 2014. The new law extends the existing incentive program to January 1, 2017.  Further, the new law doubles the possible tax breaks as compared to the existing incentive … Continue reading this entry

IRS Releases New Guidance on Beginning of Construction

The IRS recently released Notice 2014-46 (the Notice) which provides welcome guidance to tax equity investors and developers on the construction of wind, geothermal, biomass, landfill gas and certain hydropower and marine hydrokinetic energy projects for purposes of qualifying for the section 45 renewable electricity production tax credit (PTC), or the section 48 investment tax … Continue reading this entry