WASHINGTON – Dec. 10, 2013
Regulators today released a final draft of the provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act commonly referred to as the Volcker Rule. The Federal Deposit Insurance Corporation (FDIC) and Federal Reserve Board today unanimously approved the rule. The so-called Volcker Rule places certain prohibitions and restrictions on the ability of a banking entity and non-bank financial company to make certain kinds of equity investments, and thus could have significant implications for the tax credit equity market.
To hear about the rule’s significance to the low-income housing tax credit (LIHTC), new markets tax credit (NMTC) and renewable energy tax credits, tune in to the Dec. 17 Tax Credit Tuesday podcast.
WASHINGTON – Nov. 21, 2013
The Internal Revenue Service (IRS) is soliciting comments concerning Form 8835, Renewable Electricity Production Credit, as part of its ongoing information collection. No changes have been made to the form at this time. Written comments should be received on or before Jan. 20, 2014.
WASHINGTON – Nov. 20, 2013
The National Renewable Energy Laboratory (NREL) released “Master Limited Partnerships and Real Estate Investment Trusts: Opportunities and Potential Complications for Renewable Energy.” The report discusses challenges faced by master limited partnerships (MLPs) and real estate investment trusts (REITs) when financing renewable energy assets, including challenges related to effectively utilizing federal income tax incentives. The report examines the current MLP and REIT markets and proposed rule changes as well as possible investor responses to a renewable energy REIT or MLP.
NORWALK, CONN. – Nov. 14, 2013
The Financial Accounting Standards Board’s Emerging Issues Task Force (EITF) today voted to issue a new exposure draft of changes to accounting for energy tax credit investments, subject to the completion of certain administrative procedures. The EITF will consider the conditions developed for low-income housing tax credits in evaluating energy tax credit investments. EITF said that it wanted to collect more information from stakeholders and staff before making a final decision.
For a more detailed discussion of the meeting, check out the Nov. 19 Tax Credit Tuesday podcast.
WASHINGTON– Nov. 5, 2013
Solar Access to Public Capital (SAPC), a working group of solar industry stakeholders convened by the National Renewable Energy Laboratory (NREL), today announced that it has developed standard contract templates that could help lower transaction costs and improve access to low-cost residential and commercial solar projects. In a press release, NREL said the template contracts could improve user transparency, increase availability of private capital and lower the consumer cost of solar energy.
WASHINGTON– Nov. 1, 2013
The Office of the Comptroller of the Currency (OCC) today issued the new issue of its Community Development Insights online newsletter that shows how national banks and federal savings associations can use public welfare investment authority to invest in wind energy developments. The newsletter, titled “Investing in Wind Energy Using the Public Welfare Investment Authority,” describes how banks and federal savings associations may invest in wind energy facilities if the investment primarily benefits low- and moderate-income individuals/areas, or other areas targeted by a governmental entity for redevelopment, or if the investment would receive consideration as a “qualified investment” under 12 CFR 25.23 of the Community Reinvestment Act (CRA). More information can be found in the public welfare investments resource directory at www.occ.gov.
DENVER– October 23, 2013
The Western Governors’ Association (WGA) this week wrote a letter urging Congress to modify the Section 48 renewable energy investment tax credit (ITC) by basing eligibility on a “commence construction” standard rather than the current “placed in service” standard. In their letter, the governors say the change would maximize the effectiveness of the ITC; support continued domestic energy production and job creation; and attract more investment to the industry by reducing risk for project sponsors and investors. WGA says taxpayer dollars would remain protected under a commence construction standard because the ITC would still only be claimed once a project is placed in service.
Tune into the Oct. 29 Tax Credit Tuesday podcast to hear more about the proposal.
WASHINGTON, D.C. – September 23, 2013
The Internal Revenue Service (IRS) issued a notice last week to clarify beginning of construction requirements for the renewable energy production tax credit (PTC) or the investment tax credit (ITC). Notice 2013-60 provides a method for taxpayers to satisfy both the continuous construction and continuous efforts tests. It also makes the master contract provision in Notice 2013-29 applicable for safe harbor purposes and allows taxpayers to transfer a facility after construction has begun without disqualifying it for the PTC or ITC.
To discuss these requirements, join Novogradac & Company in Washington, D.C. for the Novogradac Financing Renewable Energy Conference, Nov. 7-8.
WASHINGTON, D.C. – September 13, 2013
The Office of the Comptroller of the Currency (OCC) on Tuesday issued a community affairs fact sheet on public welfare investments (PWIs) in wind energy tax credit transactions. According to the fact sheet, national banks and federal savings associations may invest in wind energy facilities if the investment primarily benefits low- and moderate-income individuals/areas, other areas targeted by a governmental entity for redevelopment or if the investment would receive consideration as a “qualified investment” under 12 CFR 25.23 of the Community Reinvestment Act (CRA). A national bank’s aggregate investments under the PWI authority are capped at 5 percent of the bank’s capital and surplus; the OCC may grant case-by-case exceptions that would allow the limit to be increased up to 15 percent. More information can be found in the public welfare investments resource directory at www.occ.gov.
WASHINGTON, D.C. – June 28, 2013
Yesterday, Rep. Jan Schakowsky, D-Ill., introduced legislation that would permanently extend the renewable energy production tax credit (PTC) for wind, geothermal, hydro and marine power. If enacted, H.R. 2539, the Prioritizing Energy Efficient Renewables (PEER) Act, would also eliminate the tax credit for intangible drilling costs, the domestic manufacturing tax credit for oil and gas and the percentage depletion credit for oil and gas wells.