Category Archives: Wind

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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 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

US Senate Passes Bipartisan Energy Bill

The first broad energy bill passed in nearly a decade was passed by the Senate yesterday with an 85-12 vote margin. The Energy Policy Modernization Act of 2016, S. 2012, responds to major changes to the energy landscape spurred by the growth in renewable energy and domestic natural gas and oil production. The bill includes provisions … 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

California Expands Renewable Portfolio Standard to 50% by 2030

Governor Jerry Brown recently signed into law SB 350, a landmark bill designed to promote greater implementation of renewable energy technologies over the next fifteen years. The new law will: (1) increase the state’s renewable portfolio standard to fifty percent by 2030; and (2) increase building energy efficiency in the state by fifty percent by … Continue reading this entry

White House Plan to Further Expand Renewable Energy Use

President Barack Obama announced on August 24, 2015, additional steps taken to increase the adoption of renewable energy. Among other things, the set of executive actions announced on Monday include making $1 billion in additional loan guarantee authority available and announcing new guidelines for distributed energy projects utilizing innovative technology and states looking to access … Continue reading this entry

The Obama Administration’s New Climate Plan to Increase Renewables

The Obama Administration and the U.S. Environmental Protection Agency (EPA) on Monday unveiled the long-anticipated Clean Power Plan (the Plan), which is intended to reduce overall carbon output by, in part, promoting the installation and expansion of renewable energy resources. In a process that has spanned multiple years and has included extensive outreach and public … Continue reading this entry

Attack on Colorado’s Renewable Energy Standard Law Denied

A three-judge panel of the 10th Circuit Court affirmed on July 13th that Colorado’s voter-approved renewable energy mandate does not violate the U.S. Constitution, ruling that the state’s renewable energy standard (RES) does not impose unlawful regulations on out-of-state commerce. In 2004, Colorado voters passed Amendment 37, which required investor-owned utilities to obtain at least ten percent … Continue reading this entry

Hawaii Sets 100% Renewable Energy Goal and Opens the Door to Community Solar

Electricity on the island state of Hawaii will come 100% from renewable resources by 2045, pursuant to new legislation. The plan will end Hawaii’s current reliance on imported fuel oil which Governor Ige has said currently costs $5 billion annually. Wind, solar, geothermal and storage technology and distribution improvements will all play important roles. Hawaii currently produces … Continue reading this entry

FERC Issues Proposal to Ease Regulation of Gen-Tie Lines

FERC has issued a Notice of Proposed Rulemaking (NOPR) that would substantially reduce the regulatory burdens placed on energy project developers that construct generator lead lines (gen-tie lines) to interconnect their projects to the grid. Currently, developers that own, operate or control a gen-tie line (referred to in the NOPR as “Interconnection Customer’s Interconnection Facilities” … 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

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

Expensive Lessons Learned after 8th Circuit Rules against Wind Developer in Its $400 Million Suit against a Minnesota Utility

A large wind developer, enXco Development Corp. (“enXco”), learned a hard lesson about the importance of negotiating flexibility in contracts to deal with unforeseen regulatory hang-ups, when the U.S. Court of Appeals for the 8th Circuit affirmed a lower court’s ruling to dismiss enXco’s $400 million suit against Northern States Power Co. (“NSP”), a division … 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

Department of Energy Announces New Loan Guarantee Program for Renewable Energy and Energy Efficiency Projects

The Department of Energy’s Loan Program Office (the “DOE”) announced on April 16, 2014, a new loan guarantee program for up to $4 billion under Section 1703 of Title XVII of the Energy Policy Act. The announcement coincides with the DOE’s release of a Draft Renewable Energy and Energy Efficiency Project Solicitation (the “Draft Solicitation”) for … Continue reading this entry

Connecticut Finally Gives the Green Light to Developers of Wind Power Projects

New England states have been heavily invested in increasing the amount of generation they procure from renewables. However, Connecticut has been an outlier in preventing the development of one form of renewable generation—wind. For nearly three years, the state legislature’s Regulation and Review Committee has not acted in approving guidelines governing the siting of wind … 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

New Renewable Power Financing and Investment Opportunities in New York as State Opens Billion Dollar Funding Initiative Through “NY Green Bank”

New York just recently opened the New York Green Bank (“NY Green Bank”), the largest of its kind in the nation. The NY Green Bank is a division of the New York State Energy Research and Development Authority and will have an initial capitalization of $210 million. This amount includes $165 million that was redirected … Continue reading this entry

Deadlines for SCE and SDG&E Renewable RFOs Fast Approaching

California’s investor-owned utilities (IOUs), Southern California Edison (SCE) and San Diego Gas & Electric Company (SDG&E), have issued new requests for offers (RFOs) in order to meet California’s Renewables Portfolio Standard (RPS). The RFOs are for Eligible Renewable Resources that provide both Renewable Energy Credits (RECs) and Energy and REC-only products. Facilities must be at … Continue reading this entry