Category Archives: Tax

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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

NY Property Tax Exemption Extension for Renewable Systems

The New York legislature has passed a bill that extends a real property tax exemption for wind, solar and certain other energy systems until January 1, 2025. The bill provides that real property which includes an eligible energy system is exempt from certain real property taxes for a period of fifteen years, to the extent of any increase … Continue reading this entry

California Senate and Assembly Vote to Extend Property Tax Exclusion for Solar

In furtherance of California’s commitment to renewable solar energy, the California Senate and Assembly recently passed Senate Bill 871 (SB 871) which, if signed, would extend the sunset date on the existing property tax exclusion for newly constructed solar energy systems from January 1, 2017, to January 1, 2025. Generally, California’s Constitution limits ad valorem … Continue reading this entry

IRS Issues New Notice Concerning the Effect of Sequestration’s Haircut on Section 1603 Grant Awards

The IRS issued Notice 2014-39 this week clarifying the effect of sequestration on section 1603 grant awards. Section 1603 of the Internal Revenue Code provides a cash grant of 30 percent of the eligible basis of specified energy property. The purpose of the Section 1603 Program, created by the American Recovery and Reinvestment Act of … Continue reading this entry

Senate Finance Committee Passes PTC Extension as Part of Tax Extenders

On April 3, the Senate Finance Committee passed a modified extenders package that includes a two-year extension of the renewable energy production tax credit (PTC) under section 45 of the Internal Revenue Code as well as an extension of the option to claim the energy investment tax credit (ITC) under section 48 of the Code in … Continue reading this entry

State of the (Solar) Union

Viewers of President Obama’s State of the Union address on Tuesday evening may have noticed the President making a strong, albeit brief, statement in support of solar energy in the United States. The President commented, “It’s not just oil and natural gas production that’s booming; we’re becoming a global leader in solar, too. Every four … Continue reading this entry

Trade War Continues - China Hits U.S. Solar Material Suppliers With Final Anti-Dumping and Anti-Subsidy Duties

In a move viewed by many as retaliation against the U.S. for the anti-dumping and countervailing duties assessed by the U.S. against Chinese solar panels, China recently finalized its anti-dumping duties on imports into China of solar polysilicon from the U.S. and South Korea. These duties could be a significant blow to U.S. solar-grade polysilicon … Continue reading this entry

Contemplating IRS Safe Harbor for Rehabilitation Credits and its Impact on the Energy Investment Tax Credit

The IRS recently issued Revenue Procedure 2014-12, providing a safe harbor under which the IRS will not challenge partnership allocations of “section 47” federal rehabilitation tax credits. In the aftermath of the IRS’s win in Historic Boardwalk Hall, LLC v. Commissioner, the Revenue Procedure is intended to provide more predictability regarding the allocation of section … Continue reading this entry

IRS Updates Notice 2013-29 ("Begun Construction" Guidance)

On April 25, 2013, the IRS updated Notice 2013-29 to clarify the original guidance issued on April 15, 2013. Notice 2013-29 provides 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 Notice 2013-29 as revised. You can also take … Continue reading this entry

IRS Releases "Begun Construction" Guidance for PTC and ITC Eligibility

It’s official! On “tax day” (April 15, 2013), the IRS released Notice 2013-29 (revised on April 25) providing guidance regarding whether a “qualified facility” will be eligible for the renewable electricity production tax credit (PTC) under section 45 of the Tax Code or the energy investment tax credit (ITC) under section 48 in lieu of the … Continue reading this entry

PTC Amount Increased for 2013

In a notice released on April 3, 2013, the IRS increased the 2013 amount of the Section 45(a) production tax credit (PTC) for the sale of electricity produced from the qualified energy resources of wind, closed-loop biomass, geothermal energy, and solar energy to 2.3 cents per kilowatt-hour. This is an increase over the 2.2 cents … Continue reading this entry

IRS Internal Memorandum Describes Position on Partnership Structures After Historic Boardwalk Hall

Drafted three days after the Third Circuit’s decision in Historic Boardwalk Hall LLC v. Commissioner, No. 11-1832 (3d Cir. 2012), but only recently released, Field Attorney Advice 20124002F describes the IRS’s position in a historic rehabilitation partnership analogous to the type of situation that was the subject of HBH. This internal memorandum is relevant to … Continue reading this entry

Tribe Permitted to Pass ITCs to Lessee in Master-Tenant Structure

In recently released Private Letter Ruling 2013-10-001, the IRS permitted a federally recognized Native American tribe (the “Tribe”) to pass the investment tax credit (the “ITC”) for Section 48 property to a taxable lessee. This taxpayer-favorable ruling is interesting because it sets forth the IRS’s interpretation of rules that are of concern when participating in … Continue reading this entry