NORWICH, Conn. – July 31, 2015
The Internal Revenue Service (IRS) today released its 2015-2016 Priority Guidance Plan and fourth-quarter update to the 2014-2015 guidance plan. The 2015-2016 Priority Guidance Plan contains 277 projects, 40 projects fewer than the original version of last year’s document. The IRS said that some items that were removed may be considered for inclusion in a future plan. Compared to a previous version, Treasury removed the following priorities: update Rev. Proc. 2007-54, which provides relief under Section 42 in the case of a presidentially declared disaster; provide guidance concerning the exception under Section 42(d)(6) for any federally or state-assisted building; and clarify Notice 2013-26 and Notice 2013-60 regarding how to establish the beginning of construction of a facility under Section 45(d), as modified by the American Taxpayer Relief Act of 2012. Treasury added a priority to modify Notice 2015-4 by providing a revised effective date of the performance and quality standards for certain small wind energy property under Section 48.
Tune in to the Aug. 4 Tax Credit Tuesday podcast for more information.
WASHINGTON – July 17, 2015
Senate Finance Committee Chairman Orrin Hatch, R-Utah, and Ranking Member Ron Wyden, D-Ore., today announced that the committee will mark up a tax extenders bill Tuesday. The chairman's mark of the bill included extending the following provisions through the end of 2016: the minimum applicable percent of the 9 percent low-income housing tax credit (LIHTC) (for allocations made before Jan. 1, 2017); the new markets tax credit (NMTC) at $3.5 billion annually; the Section 45L energy efficient home credit; the Section 179D energy-efficient commercial buildings deduction; and the ability to claim the renewable energy investment tax credit (ITC) in lieu of the production tax credit (PTC). A minimum 4 percent applicable percentage for LIHTCs used to finance the acquisition of property is not included, but could be added in a modified chairman's mark expected for release Tuesday. Estimated revenue effects of the chairman's mark can be found here and a summary of the provisions can be found here.Tune in to the July 21 Tax Credit Tuesday podcast for more information.
NORWALK, Conn. – July 14, 2015
The Treasury Department and the Internal Revenue Service (IRS) on Monday published Notice 2015-51 to provide performance and quality standards that small wind energy property must meet to qualify for the renewable energy investment tax credit (ITC) or production tax credit (PTC). The notice modifies Notice 2015-4 by providing a revised effective date for certain small wind energy property that meets performance and quality standards.
NORWALK, Conn. – June 25, 2015
Sens. Chris Coons, D-Del., and Jerry Moran, R-Kan., yesterday reintroduced the Master Limited Partnerships (MLPs) Parity Act (S. 1656). The bill would allow renewable energy investors to form MLPs, a publicly traded business structure that combines the funding advantages of corporations with the tax advantages of partnerships. The MLP structure is currently available only to investors in fossil-fuel based energy projects. Reps. Ted Poe, R-Texas, and Mike Thompson, D-Calif., introduced similar legislation (H.R. 2883) in the House.
NORWALK, Conn. – June 15, 2015
The Internal Revenue Service (IRS) last week issued Chief Counsel Advice Memorandum 201524024, which said that a partnership allocating Section 48 renewable energy investment tax credits (ITCs) among its partners cannot rely on the Rev. Proc. 2007-65 safe harbor. The memorandum states that Rev. Proc. 2007-65 provides a safe harbor only for partners or partnerships with Section 45 wind energy production tax credits (PTCs).
WASHINGTON – May 26, 2015
Rep. Mike Thompson, D-Calif., last week introduced the New Energy for America Act (H.R. 2412), a bill to extend the renewable energy investment tax credit (ITC) for five years. The legislation would extend the ITC for solar energy, qualified small wind energy, qualified fuel cell, qualified microturbine, thermal energy and combined heat and power system properties that begin construction before Jan. 1, 2022.
WASHINGTON – April 23, 2015
Rep. Kenny Marchant, R-Texas, and Rep. Mike Pompeo, R-Kan. this week introduced the PTC Elimination Act (H.R. 1901) to phase out and repeal the production tax credit (PTC) for renewable energy sources. The PTC expired in December, but a new Congress could extend or modify it. H.R. 1901 calls for a repeal of the “entirety of the PTC’s statutory framework … after Dec. 31, 2025, to put a hard stop date on credits and deter extenders.” The bill was referred to the House Ways and Means Committee.
WASHINGTON – March 11, 2015
The Senate Finance Committee today announced that its tax reform working groups are seeking comments from the public as they work to advance tax reform efforts in the 114th Congress. The five working groups are community development and infrastructure; business income tax; individual income tax; international tax; and savings and investment. The community and infrastructure group’s jurisdiction includes the low-income housing tax credit (LIHTC), the new markets tax credit (NMTC) and the historic tax credit (HTC). The business tax reform group’s jurisdiction includes renewable energy tax credits (RETCs). Comments will be accepted through April 15.
Tune into the March 17 episode of the Tax Credit Tuesday podcast for more information.
WASHINGTON – March 11, 2015
The Internal Revenue Service (IRS) today issued a notice to update beginning of construction guidance for the renewable energy production tax credit (PTC) or investment tax credit (ITC). Notice 2015-25 provides that if a facility is placed in service before Jan. 1, 2016, the facility will be considered to satisfy the continuous construction test for purposes of satisfying the physical work test, or the continuous efforts test for purposes of satisfying the safe harbor. If a taxpayer begins construction on a facility before Jan. 1, 2015 and places it in service before Jan. 1, 2017, Notice 2015-25 says the facility will be considered to satisfy the continuous construction test or the continuous efforts test, regardless of the amount of physical work performed or the amount of costs paid or incurred within that time frame.
Join Novogradac & Company LLP at the Novogradac Financing Renewable Energy Conference in Las Vegas, April 23-24, to learn more about the guidance and other key renewable energy topics.
WASHINGTON – Feb. 3, 2015
In its proposed budget for fiscal year (FY) 2016, the Obama administration proposes to modify and permanently extend the renewable energy production tax credit (PTC) and investment tax credit (ITC). For facilities that begin construction in 2016 or later, the proposal would make the PTC permanent and refundable. Solar facilities that qualify for the ITC would be eligible to claim the PTC. The proposal would also permanently extend the ITC at the 30 percent credit level, which is currently scheduled to expire for properties placed in service after Dec. 31, 2016, and it would make permanent the election to claim the ITC in lieu of the PTC for qualified facilities eligible for the PTC.
Tune into the Feb. 3 episode of the Tax Credit Tuesday podcast for more information on the proposed budget.
WASHINGTON – Jan. 15, 2015
Senate Finance Committee Chairman Orrin Hatch, R-Utah, and Ranking Member Ron Wyden, D-Ore., today announced the co-chairs of the five working groups they created to advance tax-reform efforts in the 114th Congress. The groups will work with the Joint Committee on Taxation (JCT) to review current tax law, analyze available reform options and produce a comprehensive report that can serve as a foundation for bipartisan tax reform legislation. The report is expected to be released by the end of May.
The five working groups are community development and infrastructure, co-chaired by Sens. Dean Heller, R-Nev., and Michael Bennet, D-Colo.; business income tax, co-chaired by Sens. John Thune, R-S.D., Ben Cardin, D-Md.; individual income tax, co-chaired by Sens. Chuck Grassley, R-Iowa, Mike Enzi, R-Wyo., and Debbie Stabenow, D-Mich.; international tax, co-chaired by Rob Portman, R-Ohio, and Chuck Schumer, D-N.Y.; and savings and investment, co-chaired by Sens. Mike Crapo, R-Idaho, and Sherrod Brown, D-Ohio. The community and infrastructure group will encompass the low-income housing tax credit (LIHTC), the new markets tax credit (NMTC) and the historic tax credit (HTC), and the business tax reform group will encompass renewable energy tax credits (RETCs).
Tune into the Jan. 20 episode of the Tax Credit Tuesday podcast for more information.