News Archive:
2008
November
NMHC PUBLISHES GUIDANCE ON NEW ENERGY TAX CREDITS
WASHINGTON, D.C. - November 6, 2008
The National Multi Housing Council announced that it has produced new guidance providing more information on legislation passed last month that extended several tax incentives for renewable energy. The guidance specifically addresses the $1.80 per square foot tax deduction for energy-efficient commercial buildings, a 30 percent investment tax credit for solar energy and qualified fuel cell property and a $2,000 per unit residential energy-efficiency tax credit that may apply to some low-rise properties.
October
HOUSE APPROVES RESCUE BILL WITH RETC, NMTC, LIHTC PROVISIONS
WASHINGTON, D.C. - October 3, 2008
The House today voted 263 to 171 to approve H.R. 1424, the Emergency Economic Stabilization Act of 2008, as amended by the Senate earlier this week. In addition to addressing concerns of the stability of the economy and financial system, H.R. 1424 extends the production tax credit (PTC) for wind energy for one year, the investment tax credit (ITC) for solar energy projects for eight years and the new markets tax credit (NMTC) for one year. The bill also provides additional low-income housing tax credit (LIHTC) authority for disaster relief in the Midwest as well as in Texas and Louisiana. Click here for a summary of the energy, extenders and disaster tax provisions included in the Emergency Economic Stabilization Act of 2008.
An additional $8 per capita in LIHTC authority is provided for 2008, 2009 and 2010 for the Midwestern Disaster Area. H.R. 1424 also provides an additional $16 per capita in LIHTC authority for 2008, 2009 and 2010 to areas affected by Hurricane Ike, which include Chambers, Galveston, Jefferson and Orange counties in Texas and Calcasieu and Cameron parishes in Louisiana.
The White House has expressed strong support for the bill and President George W. Bush is expected to sign it into law promptly.NMTC, RETC EXTENSIONS ADDED TO FINANCIAL RESCUE BILL
WASHINGTON, D.C. - October 1, 2008
The Senate last night approved a unanimous consent agreement to attach a package of tax extenders to upcoming financial rescue legislation. This previously-passed tax measure would provide a patch for the alternative minimum tax and extend the production tax credit for wind energy for one year, the investment tax credit for solar energy projects for eight years and the new markets tax credit for one year. Reports indicate this move was intended to increase bicameral support for the Emergency Economic Stabilization Act of 2008, which the House rejected on Monday. The Senate is expected to vote this evening on the legislative package consisting of the Emergency Economic Stabilization Act of 2008, an increase in federal coverage of bank deposits to $250,000 and the Senate-passed tax extenders, and a House vote is expected on Thursday.
Background information and analysis of these proposals can be downloaded via the Novogradac Report on Tax Credits, a weekly podcast available online at www.novoco.com/podcast.
To discuss the future of these tax incentives, join Novogradac & Company at the New Markets Tax Credit Investors Conference, October 22-24, in Boston or November 13 - 14 in Washington, D.C. for the Financing Renewable Energy Conference.
September
HOUSE VOTES TO EXTEND NMTC, RETCS
WASHINGTON, D.C. - September 26, 2008
The House today approved H.R. 7060, Renewable Energy and Job Creation Tax Act of 2008, by a vote of 226-166. The measure was introduced yesterday by House Ways and Means Chairman Charles Rangel, D-N.Y. It would extend a number of expiring tax incentives, including the new markets tax credit and renewable energy tax credits. The bill differs from the extension legislation passed earlier this week in the Senate, and those differences remain to be resolved before a final measure can be sent to the White House for approval.
For more information, tune in to the Novogradac Report on Tax Credits, a weekly podcast that provides the latest news in the fields of renewable energy, community development and affordable housing.
To learn more about the future of renewable energy tax incentives, join Novogradac & Company LLP November 13 - 14 in Washington, D.C. for the Financing Renewable Energy Conference.
SENATE VOTES TO EXTEND RENEWABLE ENERGY TAX CREDITS
WASHINGTON, D.C. - September 24, 2008
The Senate yesterday approved by a vote of 93-2 a package of disaster relief measures and tax extenders. The $150 billion Senate proposal includes an extension of the placed-in-service date for the renewable energy production tax credit (PTC) through December 31, 2011, and an extension through 2016 of the renewable energy investment tax credit (ITC). The measure was passed as an amendment to H.R. 6049, which was a version of tax extenders approved by the House earlier this year. The bill will now be returned to the House for consideration.
To learn more about the future of renewable energy tax incentives, join Novogradac & Company LLP November 13 - 14 in Washington, D.C. for the Financing Renewable Energy Conference.
SENATE MAY CONSIDER ENERGY TAX CREDIT EXTENSIONS THIS WEEK
WASHINGTON, D.C. - September 17, 2008
Senate Finance Committee Chairman Max Baucus, D-Mont., and Ranking Member Chuck Grassley, R-Iowa, yesterday announced an agreement with the Senate’s Democratic and Republican leadership to move legislation that includes the $40 billion package of energy tax incentives unveiled last week by Sens. Baucus and Grassley, as well as a patch for the alternative minimum tax (AMT), $7 billion in disaster relief for the Midwest, and two year extensions of expired expiring business tax provisions. The energy tax incentives include an extension of the placed-in-service date for the renewable energy production tax credit (PTC) through December 31, 2011, and an extension through 2016 of the renewable energy investment tax credit (ITC). Senators may vote this week to replace the current text of H.R. 6049, energy and tax extender legislation approved in the House earlier this year, with the revised tax extenders language.
To learn more about the efforts to extend renewable energy tax incentives, join Novogradac & Company LLP November 13 - 14 in Washington, D.C. for the Financing Renewable Energy Conference.
SENATE FINANCE LEADERS INTRODUCE NEW ENERGY TAX PACKAGE
WASHINGTON, D.C. - September 11, 2008
Senate Finance Committee Chairman Max Baucus, D-Mont., and Ranking Member Chuck Grassley, R-Iowa, today unveiled energy tax legislation that includes long-term extensions of wind and solar energy tax credits. The bill extends the placed-in-service date for the Section 45 renewable energy production tax credit, through December 31, 2011. The package also includes an extension of the 30 percent investment tax credit for solar energy property and qualified fuel cell property, as well as the 10 percent investment tax credit for microturbines through 2016. The cost of the package is offset in part with reductions in tax breaks for major oil and gas companies, a strategy that has been unsuccessful in previous attempts. Baucus and Grassley plan to present their proposal to the Senate for consideration this month.
To learn more about the efforts to extend renewable energy tax incentives, join Novogradac & Company LLP November 13 - 14 in Washington, D.C. for the Financing Renewable Energy Conference.
OCC APPROVES PRECEDENT SETTING RENEWABLE ENERGY INVESTMENT
WASHINGTON, D.C. - September 10, 2008
A national bank may invest in limited liability entities each of which will develop, acquire, install and maintain solar energy-producing facilities and provide electricity for specified properties under the part 24 public welfare investment authority, according to recent guidance provided by the Office of the Comptroller of the Currency (OCC). In Community Development Investment Letter 2008-1, the OCC says that such an investment complies with the public welfare and the investment limit requirements of CFR Part 24, which requires that a bank's investment must be designed primarily to promote the public welfare, such as by providing housing, services or jobs.
To learn more about trends in renewable energy investment and the latest industry guidance, join Novogradac & Company LLP at the Financing Renewable Energy Conference on November 13 - 14 in Washington, D.C.
July
SENATE TO CONSIDER RETC EXTENSIONS NEXT WEEK
WASHINGTON, D.C. - July 25, 2008
Senate Finance Committee Chairman Max Baucus, D-Mont., yesterday introduced S. 3335, the Jobs, Energy, Families and Disaster Relief Act, a package of tax extenders that would extend and expand the production and investment tax credits for renewable energy. The bill would also extend the new markets tax credit (NMTC) for one year. Click here for a summary of the bill’s provisions and its estimated revenue effects. The Senate is expected to take up S. 3335 for consideration next week.
IRS UPDATES OPEN-LOOP BIOMASS GUIDANCE
WASHINGTON, D.C. - July 14, 2008
Last month the Internal Revenue Service (IRS) published Notice 2008-60, which sets out guidance under Section 45 of the Internal Revenue Code (IRC) for electricity produced from certain renewable resources. Most notably, Notice 2008-60 supersedes Notice 2006-88 by removing prior guidance regarding the netting rule. The netting rule contained in Notice 2006-88 required open-loop biomass plants located adjacent to an industrial facility if owned by the same taxpayer to net the electrical load of the industrial facility with the electricity generation of the biomass plant, before claiming the production tax credit (PTC) on the remainder. Notice 2008-60 also makes changes to reflect legislative changes since Notice 2006-88 was published.
To learn about the latest guidance and industry news, plan to join Novogradac & Company LLP at the Financing Renewable Energy Conference on November 13 - 14 in Washington, D.C.
May
IRS PUBLISHES 2008 INFLATION ADJUSTMENT FACTORS, REFERENCE PRICES
WASHINGTON, D.C. - May 27, 2008
In Notice 2008-48, the Internal Revenue Service (IRS) set the inflation adjustment factors and reference prices for calendar year 2008 for the renewable electricity production credit, the refined coal production credit, and the Indian coal production credit under section 45 of the Internal Revenue Code. Click here for a copy of the notice.
IRS RULING PROVIDES GUIDANCE FOR USING ENERGY TAX CREDITS IN BOND-FINANCED HOUSING PROJECTS
WASHINGTON, D.C. - May 21, 2008
A recent private letter ruling (PLR) published by the Internal Revenue Service (IRS) provides guidance to affordable housing developers regarding how to structure bond-financed projects to maximize renewable energy investment tax credits available under Section 48 of the Internal Revenue Code. In PLR 200820011, the IRS ruled that no reduction in investment credit basis was required for solar equipment placed in a tax-exempt bond-financed affordable housing project where: bond loan documentation prohibited the use of bond loan proceeds to finance the solar equipment; the bond proceeds were not actually used to finance the solar equipment; and the solar equipment did not serve as collateral for the bond loan.
Learn more about this ruling next week in the Novogradac Report on Tax Credits, a weekly podcast presented on Tax Credit Tuesdays.
WAYS AND MEANS COMMITTEE APPROVES RETC EXTENSIONS
WASHINGTON, D.C. - May 15, 2008
By a vote of 25-12 the House Ways and Means Committee today approved H.R. 6049, the Energy and Tax Extenders Act of 2008. The bill includes a six-year extension of the investment tax credit (ITC) for solar energy; three-year extensions of the production tax credit (PTC) for energy derived from biomass, geothermal, hydropower, landfill gas and solid waste; and a one-year extension of the PTC for energy derived from wind. Click here for more information about the bill.
WAYS AND MEANS TO CONSIDER ONE-YEAR EXTENDER PACKAGE
WASHINGTON, D.C. - May 8, 2008
At a press conference yesterday, House Ways and Means Committee Chairman Charles Rangel, D-N.Y., said his committee will consider a tax extenders bill next week. Media reports indicate the bill will include a one-year extension of some renewable energy tax provisions, and the New Markets Tax Credit (NMTC) Coalition reports that the proposal will also extend the NMTC for one year. Rangel told reporters that the package would be fully paid for but has not yet released details on the revenue offset provisions.
It's not too late to join industry experts to discuss this proposal and other important legislation next week at the Credit and Bond Financing Conference on May 15-16 in New Orleans, La.
GOP SENATORS URGE APPROVAL FOR EXTENDERS PACKAGE WITHOUT OFFSETS
WASHINGTON, D.C. - May 1, 2008
A group of 42 Senators this week sent a letter to Senate Finance Committee Chairman Max Baucus, D-Mont., and Ranking Member Charles Grassley, R-Iowa, expressing their support for the Alternative Minimum Tax and Extenders Tax Relief Act of 2008, which Baucus and Grassley introduced on April 17, and urging that it be enacted without revenue offsets. In addition to increasing the AMT exemption and allowing nonrefundable personal credits against AMT, the measure would provide an extension of the 30 percent investment tax credit for solar energy property and qualified fuel cell property, as well as the 10 percent investment tax credit for microturbines for one year (through 2009). It also includes an increase of $400 million to the Clean Renewable Energy Bonds (CREBs) program for bonds issued after December 31, 2008.
April
IRS ANNOUNCES 2008 INFLATION ADJUSTMENT FACTORS, REFERENCE PRICES
WASHINGTON, D.C. - April 30, 2008
The Internal Revenue Service (IRS) today announced the 2008 inflation adjustment factors and reference prices used in determining the availability of the credit for renewable electricity production, refined coal production, and Indian coal production under Internal Revenue Code (IRC) Section 45. Click here for a copy of the notice.
SENS. BAUCUS, D-MONT., AND GRASSLEY, R-IOWA, TO INTRODUCE LEGISLATION TO EXTEND CERTAIN RETCS
WASHINGTON, D.C. - April 17, 2008
U.S. Senate Finance Committee Chairman Max Baucus, D-Mont., and Ranking Member Charles Grassley, R-Iowa, today unveiled plans to introduce a bill that would make provisions to a series of energy tax credit programs, including an extension of the 30 percent investment tax credit for solar energy property and qualified fuel cell property, as well as the 10 percent investment tax credit for microturbines for one year (through 2009). It also includes an increase of $400 million to the Clean Renewable Energy Bonds (CREBs) program for bonds issued after December 31, 2008. Additionally, the legislation would extend through 2009 the New Markets Tax Credit (NMTC) program, which is set to expire December 31, 2008. The bill, which could be read by the Committee as soon as April 28, would also increase the alternative minimum tax (AMT) exemption and allow nonrefundable personal credits against AMT.
RETC EXTENSION PASSES SENATE IN HOUSING STIMULUS BILL
WASHINGTON, D.C. - April 10, 2008
Sens. Maria Cantwell, D-Wash., and John Ensign, R-Nev., by a vote of 88-8 today successfully added the Clean Energy Tax Stimulus Act of 2008 as an amendment to H.R. 3221, the Foreclosure Prevention Act of 2008, which then passed the Senate by a vote of 84-12. The amendment extends for one year the renewable energy production tax credit and modifies and extends the solar energy and fuel cell investment tax credit.
CANTWELL, ENSIGN PROPOSE ONE-YEAR RETC EXTENSION
WASHINGTON, D.C. - April 4, 2008
Sens. Maria Cantwell, D-Wash., and John Ensign, R-Nev., yesterday introduced the Clean Energy Tax Stimulus Act of 2008 to provide the continuation of clean energy production incentives. The measure would extend for one year the renewable energy production tax credit that is currently set to expire December 31. The measure would also modify and extend the solar energy and fuel cell investment tax credit.
To hear more about this proposal, tune in to the Novogradac Report on Tax Credits, a weekly podcast covering renewable energy, affordable housing and community development issues. Next week’s installment will include a discussion about this legislation and its chances of passage.
IRS PUBLISHES SECTION 45K INFLATION ADJUSTMENT FACTOR, AND REFERENCE PRICE
WASHINGTON, D.C. - April 2, 2008
Notice 2008-44 announces the 2007 credit for fuel produced from a nonconventional source under Internal Revenue Code Section 45K. The Section 45K credit for gas produced from biomass, and liquid, gaseous or solid synthetic fuel produced from coal is reduced for the 2007 calendar year. The Section 45K credit for fuel produced from coke or coke gas is not subject to phase-out. Notice 2008-44 will appear in Internal Revenue Bulletin 2008-16, dated April 21, 2008.
Join Novogradac & Company LLP at the Financing Renewable Energy Conference May 1-2 in San Francisco to learn about the latest renewable energy tax credit guidance and regulations.
March
DOE TO INVEST IN ENERGY RESEARCH
WASHINGTON, D.C. - March 27, 2008
The U.S. Department of Energy (DOE) announced on March 12 that it will invest up to $13.7 million, over three years, for 11 university-led projects that will focus on developing advanced solar photovoltaic (PV) technology manufacturing processes and products. Combined with a minimum university and industry cost share of 20 percent, as much as $17.4 million will be invested in these projects.
USDA INVITES APPLICATIONS FOR RENEWABLE ENERGY LOANS, GRANTS
WASHINGTON, D.C. - March 17, 2008
The U.S. Department of Agriculture (USDA) will accept $220.9 million in loan and grant applications within its Renewable Energy Systems and Energy Efficiency Improvements Program. Loan guarantees and grants are available to agricultural producers and rural small businesses to purchase and install renewable energy systems or to make energy efficiency improvements. Eligible applicants may seek loan guarantees to cover as much as 50 percent of a project's cost, not to exceed $10 million. Grants are available for as much as 25 percent of a project's cost, not to exceed $250,000 for energy efficiency improvements and $500,000 for renewable energy systems. USDA Rural Development has invested $674 million in more than 1,763 renewable energy and energy efficiency projects since 2001. These investments include ethanol, biodiesel, wind, solar, geothermal, methane gas recovery systems and biomass.
Join Novogradac & Company LLP at the Financing Renewable Energy Conference May 1-2 in San Francisco to learn how to combine grants and other subsidies with renewable energy tax credits.
February
OREGON LEGISLATURE AMENDS STATE RETC
PORTLAND, Ore.- February 28, 2008
Oregon lawmakers last week passed a bill to streamline and alter the state business energy tax credit for renewable energy projects. Gov. Ted Kulongoski is expected to sign H.B. 3619b, which clarifies the credit provisions and doubles the maximum amount of an eligible project for the credit from $20 million to $40 million.
BUSH SIGNS ECONOMIC STIMULUS MEASURE
WASHINGTON, D.C.- February 13, 2008
President George W. Bush today signed the Economic Stimulus Act of 2008, calling it a "booster shot" for the American economy. The package includes tax rebate checks for individuals, incentives for business investment, and an increase in conforming and Federal Housing Administration (FHA) loan limits.
One of the incentives for business investment would allow businesses to deduct 50 percent of the cost of qualifying property placed in service in 2008. Under this provision, owners of a low-income housing tax credit (LIHTC) property placed in service in 2008 may be able to deduct up to 50 percent of the cost of personal property and land improvements. Click here for Novogradac & Company LLP's analysis of the availability of the bonus depreciation for LIHTC properties.
The economic stimulus package and its provisions, as well as the possibility that additional stimulus legislation could be introduced, will a topic of discussion at Novogradac & Company LLP's upcoming conferences.
HOUSE UNVEILS NEW ENERGY TAX LEGISLATION PACKAGE
WASHINGTON, D.C. – February 13, 2008
Ways and Means Chairman Charles B. Rangel, D-N.Y., yesterday introduced H.R. 5351, the Renewable Energy and Energy Conservation Tax Act of 2008. The legislation would extend the renewable energy production tax credit (PTC) for three years and the investment tax credit (ITC) for renewable energy would be extended for eight years. Click here for a summary of the bill’s provisions. (The full text of the measure is not yet available; as soon as it is, Novogradac & Company LLP will post it here.)
BILL INTRODUCED TO EXTEND PRODUCTION TAX CREDIT FOR SEVEN YEARS
WASHINGTON, D.C. – February 11, 2008
Rep. Bruce Braley, D-Iowa, last week introduced a bill to extend the renewable energy production tax credit (PTC). The Clean Energy Investment Act of 2008 would extend the PTC for seven years, to January 1, 2016. Click here for more information.
IRS ANNOUNCES CLEAN RENEWABLE ENERGY BOND ALLOCATIONS
WASHINGTON, D.C. – February 8, 2008
The Internal Revenue Service (IRS) today announced that 312 projects are eligible to be financed with tax-credit bonds under the Clean Renewable Energy Bonds (CREB) program. State and local governments as well as electrical cooperatives are able to issue tax-credit bonds under the program. The IRS says it reviewed 342 applications from 33 states for $897 million of CREB financing pertaining to 395 projects. Of the approximately $477 million of available CREB volume cap, governmental borrowers in 28 states will receive $263 million of allocations, ranging from $15,000 to $2.95 million. Approved projects of governmental borrowers include: 138 solar facilities, 88 wind facilities, 41 landfill gas facilities, 12 hydropower facilities, three closed-loop biomass facilities, three trash combustion facilities and one open-loop biomass facility. Cooperative borrowers will receive about $143 million of volume cap allocations for projects in 13 states, ranging from $300,000 to $30 million. Approved cooperative projects include: 14 wind facilities, four landfill gas facilities, six hydropower facilities, one solar facility and one open-loop biomass facility. Click here for more information.
CONGRESS OKS STIMULUS WITHOUT ENERGY TAX CREDIT EXTENSION
WASHINGTON, D.C. – February 8, 2008
In a disappointing turn, Congress yesterday came to an agreement on an economic stimulus package that does not include the Senate Finance Committee’s suggestion to extend the production tax credit (PTC) for renewable energy. As the bill was sent to President George W. Bush for his signature, some lawmakers indicated their intention to craft a second stimulus measure that could include provisions that were stripped from the package in favor of speedy passage. For more information, tune in on Tax Credit Tuesday to the Novogradac Report on Tax Credits podcast, when Michael J. Novogradac, CPA, will discuss the stimulus package and the fate of the PTC.
January
SENATE COMMITTEE APPROVES RENEWABLE ENERGY CREDIT EXTENSION
WASHINGTON, D.C. – January 31, 2008
The Senate Finance Committee yesterday approved, by a 14-7 vote, an economic stimulus package that differs from the House-approved bill. The Finance Committee's alternative proposal totals approximately $151 billion and would extend by one year, through Dec. 31, 2009, the renewable energy production tax credit (PTC) provided under Section 45 of the Internal Revenue Code. The PTC extension is one of several renewable energy tax incentives put forward by Sen. Chuck Grassley, R-Iowa, ranking member of the committee. The bill now moves to the full Senate which is expected to take it up today.
HOUSE MEMBERS URGE EXTENSION OF RENEWABLE ENERGY CREDITS BE INCLUDED IN ECONOMIC STIMULUS
WASHINGTON, D.C. – January 22, 2008
Several members of the House of Representatives last week sent a letter to House Speaker Rep. Nancy Pelosi, D-Calif., asking for inclusion of energy incentives in the economic stimulus plan currently being considered in Congress. The letter encourages the inclusion of a one-year extension of the renewable energy production and investment tax credits as an immediate way to stimulate investment and job creation. “If Congress extended this credit hundreds of millions of dollars would be invested into the economy immediately while creating new jobs,” the letter says. For more information on the early discussions about an economic stimulus package, download today’s Tax Credit Tuesday podcast. Tune in to next week’s edition for a detailed discussion of what the stimulus legislation could mean for renewable energy tax credits.