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BILL WOULD ELIMINATE ALL ENERGY TAX CREDITS

WASHINGTON, D.C. – February 3, 2012

Sens. Jim DeMint, R-S.C. and Mike Lee, R-Utah, yesterday introduced S. 2064, the Energy Freedom and Economic Prosperity Act (EFEPA), which repeals all energy specific tax credits. EFEPA repeals all tax credits for renewable and conventional energy sources and requires a corresponding reduction in the corporate tax rate. The bill’s sponsors say that the bill would eliminate nearly $90 billion in energy subsidies during the next 10 years. Rep. Mike Pompeo, R-Kan., introduced a companion bill (H.R. 3308) in the House of Representatives in November.

Tune in to Tax Credit Tuesday on February 7 to hear more about the Energy Freedom and Economic Prosperity Act and what it could mean for renewable energy.

PRESIDENT PROPOSES NEW TAX CREDITS IN STATE OF THE UNION

WASHINGTON, D.C. – January 25, 2012

In last night’s State of the Union address, President Barack Obama proposed a new $6 billion Manufacturing Communities Tax Credit. The proposed tax credit would provide $2 billion per year for three years to encourage investments in communities affected by job loss caused by the closure of a military base or a major employer. The president also discussed tax reform, energy tax credits and housing.

In his Notes from Novogradac blog, Michael J. Novogradac, CPA, discusses relevant points from the address, additional information that has since been released, and what these proposals mean for programs such as the new markets tax credit, historic tax credit, low-income housing tax credit and renewable energy tax credit.

TREASURY UPDATES SEC. 1603 SAFE HARBOR FAQS

WASHINGTON, D.C. – December 13, 2011

The U.S. Department of the Treasury yesterday updated its frequently asked questions regarding the beginning of construction for projects seeking payments through the Section 1603 program. Treasury updated Q23 and Q24, which address 5 percent safe harbor and changes of ownership after the safe harbor is met but before projects are placed in service.

Tune in to December 20’s Tax Credit Tuesday podcast to hear more about the answers and what they could mean for renewable energy projects. Questions about the safe harbor guidance can be directed to Tony Grappone, CPA, at (617) 330-1920.

STUDY: PTC EXPIRATION WOULD COST 37,000 JOBS

WASHINGTON, D.C. – December 12, 2011

The American Wind Energy Association (AWEA) yesterday released “Impact of the Production Tax Credit on the U.S. Wind Market.” The study finds that an extension of the renewable energy production tax credit (PTC) for wind would create or preserve 54,000 jobs in the next four years. If the PTC expires, however, the report says the wind industry would lose 37,000 jobs in that time. Navigant Consulting, which conducted the study for AWEA, found that the PTC would support jobs throughout the country, and especially in Colorado, Texas, Iowa, Illinois, Pennsylvania, California, Oregon, North Dakota and Ohio.

You can hear more about the study results by tuning in to the Tax Credit Tuesday podcast on December 20.

SENATORS URGE EXTENSION OF SECTION 1603 PROGRAM

WASHINGTON, D.C. – December 8, 2011

Congressional Democrats sent two letters yesterday urging Congressional leaders to extend the Section 1603 program, which is set to expire on December 31, 2011. The Senate letter, signed by 34 Democratic Senators and sent to Senate Majority Leader Harry Reid, Minority Leader Mitch McConnell, Finance Committee Chairman Max Baucus and Finance Committee Ranking Member Orrin Hatch, said that the Section 1603 program has supported 290,000 jobs and leveraged $23 billion in private investment. In the letter to House leaders Speaker of the House John A. Boehner, House Minority Leader Nancy Pelosi, House Majority Leader Eric Cantor and House Minority Whip Steny Hoyer, 88 Democratic Representatives also cited the job creation and private investment spurred by the program.

REP. BRALEY, 763 ORGANIZATIONS URGE EXTENSION OF ENERGY INCENTIVES

WASHINGTON, D.C. – November 30, 2011

Rep. Bruce Braley yesterday sent a letter urging House leaders to pass a renewable energy production tax credit (PTC) extension bill and today the Solar Energy Industries Association (SEIA) sent a letter asking Congress to extend the Section 1603 grant program. Rep. Braley’s letter asked the House to include H.R. 3307, the American Renewable Energy Production Tax Credit Extension Act, in year-end tax legislation. In the SEIA letter, 763 associations, trade groups and companies asked Congress for a one-year extension of the Section 1603 grant program.

GOVERNORS URGE SUPPORT OF PRODUCTION TAX CREDIT EXTENSION

WASHINGTON, D.C. – November 16. 2011

The Governors’ Wind Energy Coalition yesterday sent a letter to Sens. Harry Reid, D-Nev., and Mitch McConnell, R-Ky., and Reps. John Boehner, R-Ohio, and Nancy Pelosi, D-Calif., asking them to support H.R. 3307, the American Renewable Energy Production Tax Credit Extension Act. H.R. 3307 extends the production tax credit (PTC), which expires on December 31, 2012, through 2016. In the letter, Rhode Island Gov. Lincoln Chafee and Iowa Gov. Terry Branstad say that inconsistent tax policy is affecting wind production projects and suggest that an interruption in the PTC will result in a loss of jobs.

The PTC extension is sure to be a hot topic at this week’s Financing Renewable Energy Conference, November 17-18 in Washington, D.C. It’s not too late to attend. Simply call 415-356-7995 to register.

BILL TO EXTEND PRODUCTION TAX CREDIT INTRODUCED IN HOUSE

WASHINGTON, D.C. – November 3 2011

Reps. Dave Reichert, R-Wash., and Earl Blumenauer, D-Ore., yesterday introduced the American Renewable Energy Production Tax Credit Extension Act, H.R. 3307. The bill extends the production tax credit (PTC) for wind power, geothermal power, hydropower and other forms of renewable energy for four years through 2016. The text of the bill will be posted at the Renewable Energy Tax Credit Resource Center when it becomes available.

Join Novogradac & Company at the Financing Renewable Energy Conference, November 17-18 in Washington, D.C., to hear from industry experts what lies ahead for the PTC.

BILL INTRODUCED TO EXTEND, EXPAND 48C ADVANCED ENERGY CREDIT

WASHINGTON, D.C. – November 2 2011

Sen. Debbie Stabenow, D-Mich., Monday introduced a bill to extend the Section 48C qualifying advanced energy credit through 2011 at a level of $5 billion and renames the credit the ‘Make it in America Credit.’ Of the total $5 billion, the bill sets aside up to $1.5 billion that may be allocated to applications submitted under the original Section 48C program. S. 1764, the Make It in America Tax Credit Act of 2011, includes a provision that would allow taxpayers to elect to receive a grant in lieu of the qualified advanced energy credit. The bill also expands the types of qualifying projects to include those producing bio-based products that may be used as a petrochemical alternative.

Tune in to the next Tax Credit Tuesday podcast to hear more about the bill and what it could mean for the renewable energy community. You can also get in on the discussion of the latest industry news and developments by attending the Financing Renewable Energy Conference November 17-18 in Washington, D.C.

COMMUNITY WIND ACT WOULD EXPAND INVESTMENT TAX CREDIT

WASHINGTON, D.C. – October 24 2011

Sens. Al Franken, D-Minn., and Jon Tester, D-Mont., on October 20 introduced legislation to expand the small wind investment tax credit (ITC) to projects with capacity up to 20 megawatts (MW). S. 1741, the Community Wind Act, expands the turbine-based ITC to wind projects and does not restrict turbine size. According to a summary of the bill, projects that qualify for the ITC under S. 1741 would no longer qualify for the production tax credit (PTC).

You can learn more about the future of the ITC and PTC at the Financing Renewable Energy Conference, November 17-18, in Washington, D.C. Reserve your spot today to get in on the discussion.

REPS. INTRODUCE BILL TO EXTEND ITC TO OFFSHORE WIND PROJECTS

WASHINGTON, D.C. – October 19, 2011

Reps. Bill Pascrell Jr., D-N.J., and Frank LoBiondo, R-N.J., yesterday introduced H.R. 3238, the Incentivizing Offshore Wind Power Act, to provide financial incentives for investing in offshore wind energy. The bill would extend the 30 percent investment tax credit (ITC) to the first 3,000 megawatts (MW) of offshore wind facilities placed in service. After the tax credit is awarded, companies would have five years to install the offshore wind facility and would not be eligible to claim other production or investment tax credits. The text of H.R. 3238 is available on the Renewable Energy Legislation page.

Tune in to the Tax Credit Tuesday podcast on October 25 to learn more about the bill and what it could mean for the renewable energy industry.

REPORT SHOWS POTENTIAL BENEFITS OF SECTION 1603 EXTENSION

WASHINGTON, D.C. – October 12, 2011

The Solar Energy Industries Association (SEIA) today released “Economic Impact of Extending the Section 1603 Treasury Program.” The report analyzes scenarios for one-, two- and five-year extensions of the Section 1603 cash grant exchange program, which expires on December 31, 2011. Among other things, the report says that a one-year extension of the program would support an additional 37,394 jobs in 2012 and result in nearly 2,000 additional megawatts of solar installations by 2016.

The impending expiration of the Section 1603 program is just one of many hot topics that will be discussed at the Financing Renewable Energy Conference, November 17-18, in Washington, D.C. Reserve your spot today to get in on the discussion.

REGULATORS RELEASE DRAFT VOLCKER RULE

WASHINGTON, D.C. – October 11, 2011

The Federal Deposit Insurance Corporation (FDIC) met today to discuss a proposed notice of rulemaking about prohibitions and restrictions on proprietary trading and certain interests in, and relationships with, hedge funds and private equity funds, known as the Volcker Rule.

Tune in to today’s Tax Credit Tuesday podcast to hear Michael J. Novogradac, CPA, discuss the rule’s significance the tax credit community, specifically how it may affect banks’ ability to continue to invest in low-income housing tax credits, new markets tax credits and renewable energy tax credits.  

IRS ADDRESSES EXCESSIVE PAYMENTS RECEIVED UNDER SECTION 1603

WASHINGTON, D.C. - October 3, 2011

In the event the Internal Revenue Service (IRS) determines that a taxpayer’s project did not qualify for all or part of a payment under the Section 1603 grant in lieu of energy tax credit program, the excessive amount of the payment is includible in the taxpayer’s gross income under § 61, notwithstanding § 48(d)(3)(A), according to Associate Chief Counsel Memorandum (AM) 2011-004. In the memo, the IRS discusses the federal income tax treatment of the receipt of excessive payments under Section 1603. Among other things, AM 2011-004 says that a taxpayer’s basis in a project for which the taxpayer receives an excessive payment under Section 1603 is not reduced by the excessive amount in either the taxable year of receipt or the taxable year of the repayment.

Join Novogradac & Company at the Financing Renewable Energy Conference on November 17-18, in Washington, D.C. to discuss the guidance provided in the memo with renewable energy industry experts.

Questions about AM 2011-004 can be directed to Tony Grappone, CPA, at (617) 330-1920.

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