News Archive:
2009
December
BILL WOULD EXTEND SECTION 1603 GRANT PROGRAM FOR TWO YEARS
WASHINGTON, D.C. - December 21, 2009
On December 17, Senators Dianne Feinstein, D-Calif., and Jeff Merkley, D-Ore., introduced a measure extend the Section 1603 program created by the Recovery Act for two additional years, until 2012. S. 2899 would also expand the Section 1603 program to allow public power utilities to participate and create a new tax credit for solar manufacturing facilities and the construction of large solar projects on disturbed private lands. Click here for a summary of the bill’s provisions. A copy of S. 2899 will be posted online at www.energytaxcredits.com as soon as the text becomes available.
WHITE HOUSE PROPOSES $5 BILLION MORE FOR SECTION 48C
WASHINGTON, D.C. - December 16, 2009
Vice President Joseph Biden today introduced a proposal to revitalizing manufacturing that includes an expansion of the Section 48C renewable energy manufacturing tax credit. The Section 48C Advanced Energy Manufacturing Tax Credit was created by the Recovery Act to support the building and equipping of new, expanded or retooled factories that manufacture the products needed to power the green economy. The Recovery Act included $2.3 billion in tax credits that are expected to support more than $7.5 billion in total capital investment. The program has been greatly oversubscribed and in today’s proposal the Administration announced its support for expanding the program by up to $5 billion.
BINGAMAN PROPOSES EXPANSION OF QUALIFYING ADVANCED ENERGY PROJECT CREDIT
WASHINGTON, D.C. - December 10, 2009
Sen. Jeff Bingaman, D-N.M., yesterday introduced S. 2857, a bill to amend the Internal Revenue Code of 1986 to expand the qualifying advanced energy project credit. A copy of S. 2857 will be posted online at www.energytaxcredits.com as soon as the text becomes available. To learn more about this proposal and other relevant bills under consideration in Congress subscribe to the Novogradac Journal of Tax Credits, a new monthly publication featuring a section dedicated renewable energy tax credit matters.
GRASSLEY BILL WOULD EXTEND ENERGY, BUSINESS TAX INCENTIVES
WASHINGTON, D.C. - December 4, 2009
Sen. Chuck Grassley, R-Iowa, yesterday introduced the Clean Renewable Energy Advancement Tax Extension Jobs (CREATE Jobs) Act of 2009. The measure, S. 2826, would extend the tax credit for the production of electricity from wind and open-loop biomass through December 31, 2016. The bill also increases the amount of bond authority for new clean renewable energy bonds used to finance facilities that generate electricity from wind, closed-loop biomass, open-loop biomass, geothermal, small irrigation, hydropower, landfill gas, marine renewable, and municipal trash combustion facilities. For all businesses, S. 2826 extends for one year the 50 percent first-year bonus depreciation allowance that is scheduled to expire at the end of this year. In a statement about the bill’s introduction, Grassley says the provision is helpful to wind energy businesses for investment in turbines and related equipment.
A copy of S. 2826 will be posted online at www.energytaxcredits.com as soon as the text becomes available. Tune in to the Tax Credit Tuesday Podcast on December 8 to learn more about this proposal and other renewable energy tax legislation under consideration in Congress.TAX CORRECTIONS ACT WOULD AMEND RENEWABLE ENERGY RULES
WASHINGTON, D.C. - December 3, 2009
Ways and Means Committee Chairman Charles B. Rangel, D-N.Y., and Ranking Member Dave Camp, R-Mich., yesterday introduced H.R. 4169, the Tax Technical Corrections Act of 2009. The proposed bill would make technical corrections to several tax laws, including changes to the election to claim the section 48 investment tax credit in lieu of the section 45 production tax credit created by Section 1102 of the Recovery Act, and changes to the grants in lieu of section 45 and 48 credits under Section 1603 of the Recovery Act. Click here for a description of the provisions of H.R. 4169. Reports indicate that Senate Finance Committee leaders are expected to introduce companion legislation.
CONGRESSMAN CALLS FOR EXTENSION OF PRODUCTION TAX CREDIT FOR BIOMASS
WASHINGTON, D.C. - December 3, 2009
In a letter to House leadership Rep. Mike Michaud, D-Maine, yesterday called for an extension of the production tax credit for renewable energy at biomass facilities. The tax credit currently goes to facilities that produce electricity using open-loop biomass. Rep. Michaud introduced legislation, H.R. 622, earlier this year to extend and strengthen the tax credit by expanding eligibility to facilities producing renewable biomass electricity that is used on-site. The bill currently has 61 bipartisan cosponsors. Click here for more information about renewable energy tax credit legislation.
November
TREASURY, IRS RELEASE 2009-2010 PRIORITY GUIDANCE PLAN
WASHINGTON, D.C. - November 24, 2009
The Treasury Department and Internal Revenue Service (IRS) today released the 2009-2010 Priority Guidance Plan, which contains 315 projects that are scheduled for completion from July 2009 through June 2010.
According to the plan, the IRS plans to publish:
- guidance under §45 on the definition of refined coal;
- guidance concerning the credit for production from advanced nuclear power facilities under §45J; and
- guidance relating to the reimbursement of the costs of specified energy property under section 1603 of the American Recovery and Reinvestment Tax Act of 2009, including guidance regarding the interplay of section 1603 with sections 45 and 48 of the Internal Revenue Code.
When this guidance is released by the IRS, it will be posted at www.energytaxcredits.com.
October
TREASURY AWARDS $2.2 BILLION IN CLEAN RENEWABLE ENERGY BONDS
WASHINGTON, D.C. - October 27, 2009
The U.S. Department of the Treasury today announced the allocation of $2.2 billion in Clean Renewable Energy Bonds (CREBs) for 805 governmental agencies, public power providers, and cooperative electric companies involved in clean renewable energy development and production. The bonds, which function as tax credit bonds, provide investors federal tax credits in lieu of the payment of a portion of the interest on the bond. Federal tax credits for CREBs will cover 70 percent of the interest on the bonds. The bonds are funded by the Energy Improvement and Extension Act of 2008 and the American Recovery and Reinvestment Act of 2009. A complete list of recipients receiving awards of bond authority to issue CREBs can be found here.
To learn more about CREBs and other energy topics, join Novogradac & Company for the Financing Renewable Energy Conference on November 11-12 in Washington, D.C.
September
IRS INVITES COMMENTS ON SECTION 48C NOTICE
WASHINGTON, D.C. - September 22, 2009
The Internal Revenue Service (IRS) today invites comments from the public about NOT 110859-09, Qualifying Advanced Energy Project Credit. This notice establishes the qualifying advanced energy project program created by the Recovery Act under Section 48C of the Internal Revenue Code. The notice also announces an initial allocation round of the qualifying advanced energy project credit to qualifying projects under the advanced energy program. No changes are being made to the notice at this time; the invitation to comment was issued as part of the Treasury Department’s continuing effort to reduce paperwork and respondent burden as required by the Paperwork Reduction Act of 1995. Comments will be accepted through November 23, 2009. Click here for a copy of the invitation to comment.
IRS REVISES WIND ENERGY PARTNERSHIP GUIDANCE
WASHINGTON, D.C. - September 21, 2009
The Internal Revenue Service today published Announcement 2009-69 making changes to Revenue Procedure 2007-65. Revenue Procedure 2007-65 established safe harbor requirements for the allocation of Section 45 wind energy production tax credits by partnerships. Announcement 2009-69 makes three changes: it expands the rights of developers and owners to enter into agreements for the purchase of the wind energy property owned by the partnership, permitting a purchase price determined prior to exercise if the parties reasonably believe that the price will not be less than the fair market value of the energy property at the time the right may be exercised; it clarifies how Section 469 applies to credits generated by wind energy facilities; and it clarifies that the revenue procedure only provides safe harbor requirements. Click here for a copy of the announcement.
To learn more about what this guidance means for wind energy partnerships, join Novogradac & Company for the Financing Renewable Energy Conference on November 11-12 in Washington, D.C.TREASURY, DOE ANNOUNCE $502 MILLION IN SECTION 1603 GRANTS
WASHINGTON, D.C. - September 1, 2009
Treasury Secretary Tim Geithner and Energy Secretary Steven Chu today announced $502 million in the first round of awards from the Section 1603 program created by the Recovery Act, which provides cash assistance to energy production companies in place of earned tax credits. The program is expected to provide more than $3 billion in financial support for clean energy projects by providing direct payments in lieu of tax credits. The Treasury Department opened the application process for the 1603 program on July 31, 2009 and today is making the first awards in one-half the statutorily mandated turnaround time of 60 days. Additional awards under the program are expected in the coming weeks. Click here for more information, including a chart of projects funded as part of today's announcement.
August
TREASURY, DOE ANNOUNCE $2.3 BILLION IN SEC. 48C TAX CREDITS
WASHINGTON, D.C. - August 13, 2009
The Treasury Department and the Department of Energy today announced $2.3 billion in tax credits available through the Advanced Energy Manufacturing Tax Credit (MTC) program created by the Recovery Act. The MTC program will provide developers with an investment tax credit of 30 percent for facilities that manufacture solar, wind, and geothermal energy equipment; fuel cells, microturbines, and batteries; electric cars; electric grids to support the transmission of renewable energy; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions. The manufacturing tax credit is capped at $2.3 billion, and credits are available for two years or until the cap is reached. Companies can file applications for the first round of credit awards between August 14, 2009 and October 16, 2009. Guidance on qualifying and applying for the MTC program can be found in Notice 2009-72. Award announcements are expected by January 15, 2010.
Click here for links to all the information available for the Section 48C Advanced Energy Manufacturing Tax Credit. This announcement will also be featured in the next Tax Credit Tuesday podcast.
MEASURE WOULD CREATE NEW TAX EXEMPT BOND CATEGORIES FOR RENEWABLE ENERGY
WASHINGTON, D.C. - August 12, 2009
Rep. Mike Thompson, D-Calif., on July 31 introduced H.B. 3525, the Private Activity Bonds for Clean Energy Projects Act. The measure would add additional categories of tax-exempt private activity bonds for renewable energy, energy efficiency, demand side management, energy storage, electric transmission, smart grid, water conservation, zero-emission vehicle projects and manufacturing facilities. In addition, the bill would allow private companies to utilize both tax exempt bonds and federal tax credits for these projects.
To learn more about this measure, tune in to the Tax Credit Tuesday podcast on August 18.IRS INVITES COMMENTS ON NOTICE 2009-52
WASHINGTON, D.C. - August 7, 2009
The Internal Revenue Service (IRS) today invited comments on Notice 2009-52, Election of Investment Tax Credit in Lieu of Production Tax Credit. Notice 2009-52 provides a description of the procedures that taxpayers must follow to make an irrevocable election to take the investment tax credit for energy property under Sec. 48 of the Internal Revenue Code in lieu of the production tax credit under Sec. 45. This election was created by the American Recovery and Reinvestment Act of 2009. The notice also discusses the coordination of this irrevocable election with an election to take a Department of Treasury grant for specified energy property under Section 1603 of the Recovery Act. Comments on Notice 2009-52 will be accepted through October 6. Click here to learn how to submit comments.
July
TREASURY BEGINS ACCEPTING SECTION 1603 GRANT APPLICATIONS
WASHINGTON, D.C. - July 31, 2009
The Treasury Department announced today that it is now accepting applications for the Section 1603 program created by the American Recovery and Reinvestment Act. The Section 1603 program will provide direct payments in lieu of investment tax credits to companies that create and place in service renewable energy facilities beginning January 1, 2009.
GUIDANCE POSTED ON GRANTS IN LIEU OF RENEWABLE ENERGY ITC
WASHINGTON, D.C. - July 9, 2009
The Treasury Department today released guidance for the Section 1603 program created by the American Recovery and Reinvestment Act. The Section 1603 program will provide direct payments in lieu of investment tax credits to companies that create and place in service renewable energy facilities beginning January 1, 2009. The Treasury Department today published the terms and conditions, program guidance, and a sample application. Applications are not currently being accepted, but the Treasury Department says a web based application will be launched the coming weeks. Click here for more information.
June
GUIDANCE PUBLISHED ON RETC PROVISION OF RECOVERY ACT
WASHINGTON, D.C. - June 5, 2009
The Internal Revenue Service (IRS) today in Notice 2009-52 provides a description of the procedures that taxpayers will be required to follow to make an irrevocable election to take the investment tax credit for energy property under Internal Revenue Code section 48 in lieu of the production tax credit under IRC section 45. The election described in Notice 2009-52 was created by the American Recovery and Reinvestment Tax Act of 2009.
May
BILL INTRODUCED TO CREATE INVESTMENT TAX CREDIT FOR EFFICIENT ENERGY TRANSMISSION
WASHINGTON, D.C. - May 13, 2009
House Majority Leader Steny Hoyer, D-Md., yesterday introduced two bills to encourage investment in more efficient energy transmission. H.R. 2348, the Financing Advanced and Superconducting Transmission Act of 2009, would accelerate depreciation from 20 years to 5 years for advanced cables. It would also provide a 30 percent investment tax credit for advanced cables and related infrastructure for transmission distances of less than 150 miles, and a 50 percent credit for longer distances. H.R. 2374, the Advanced Cable Deployment Authorization Act of 2009, would provide grants and loan guarantees toward expansion of U.S. facilities that make superconducting electrical cable and other efficient wires. Click here for a fact sheet about H.R. 2347 and H.R. 2348.
April
IRS RELEASES FACT SHEET ON RECOVERY ACT'S ENERGY PROVISIONS
WASHINGTON, D.C. - April 28, 2009
The Internal Revenue Service (IRS) published a fact sheet on the energy provisions of the American Recovery and Reinvestment Act of 2009, including energy incentives for individuals and businesses. The fact sheet covers several provisions of the law including, but not limited to: the residential energy property credit; the residential energy efficient property credit; new clean renewable energy bonds; qualified energy conservation bonds; an extension of the renewable energy production tax credit; the election of the investment credit in lieu of the production credit; the repeal of certain limits on business credits for renewable energy property; coordination with renewable energy grants; and a temporary increase in the credit for alternative fuel vehicle refueling property.
February
AMERICAN RECOVERY AND REINVESTMENT ACT SIGNED INTO LAW
DENVER, COLO. - February 17, 2009
President Barack Obama today signed into law the American Recovery and Reinvestment Act of 2009 at a signing ceremony held at the Denver Museum of Nature & Science. The new law includes enhancements to the new markets tax credit (NMTC), renewable energy tax credit (RETC) and low-income housing tax credit (LIHTC) programs.
Tune in to today’s Tax Credit Tuesday podcast to hear more about the tax credit provisions included in the $787 billion economic recovery package.
On Wednesday, February 25 Novogradac & Company will present a webinar about the American Recovery and Reinvestment Act. Michael J. Novogradac, managing partner in the San Francisco office of Novogradac & Company LLP, will describe the provisions of the new law including:
- the additional $3 billion in new markets tax credit authority provided for 2008 and 2009;
- the extensions of placed in service dates for renewable energy facilities;
- the temporary permission to elect the investment tax credit in lieu of the production tax credit;
- the low-income housing tax credit exchange provision; and
- the $2.25 billion in gap funding for LIHTC projects.
AGREEMENT ANNOUNCED ON RECOVERY LEGISLATION
WASHINGTON, D.C. - February 12, 2009
Congressional conferees yesterday announced they had reached a tentative agreement on an economic recovery package. The legislation is said to include approximately $789 billion in spending and tax provisions. While some of the details remain to be finalized, reports indicate that the final agreement includes a provision to extend the placed-in-service date for wind facilities through December 31, 2012 and through December 31, 2013 for certain other qualifying facilities. The final package is also expected to temporarily allow renewable energy production facilities to elect the investment tax credit in lieu of the production tax credit. Updates will be provided online at www.energytaxcredits.com as soon as additional information becomes available.
Novogradac & Company LLP is planning a webinar on the provisions of the economic recovery legislation. Details will be posted shortly at www.novoco.com/events.SENATE OKS RECOVERY BILL WITH LIHTC, NMTC, RETC PROVISIONS
WASHINGTON, D.C. - February 10, 2009
The Senate today voted 61 to 37 to approve H.R. 1, the American Recovery and Reinvestment Act of 2009. The Senate version of the economic recovery package includes a provision to accelerate the low-income housing tax credit (LIHTC) allowing investors to claim 20 percent of the allowable credits in each of the first three years, and the remaining 40 percent over the next seven years. The bill also provides $2 billion dollars of LIHTC gap financing.
The Senate measure would also authorize an additional $1.5 billion for the 2008 new markets tax credit (NMTC) allocation round and an additional $1.5 billion for the 2009 allocation round. The NMTCs allocated for the 2009 round would be allowed against the alternative minimum tax.
In addition, the Senate’s proposal extends the placed-in-service date for wind facilities through December 31, 2012 and through December 31, 2013 for certain other qualifying facilities. The proposal would also temporarily allow renewable energy production facilities to elect the investment tax credit in lieu of the production tax credit.
Click here for a summary of the finance provisions included in the final version of the Senate bill. The legislation will now go through a conferencing process to resolve differences with the House-passed recovery legislation. Lawmakers have indicated they intend to deliver a final bill to the president for his signature by the end of this week.
A discussion about the House and Senate recovery bills will be presented in this week’s Tax Credit Tuesday podcast, which will be posted online by 1 p.m. Pacific time.
January
SENATE ECONOMIC RECOVERY PROPOSAL WOULD EXTEND RETC
WASHINGTON, D.C. - January 23, 2009
The Senate Finance Committee today unveiled the details of its proposal for an economic recovery package, which includes provisions related to renewable energy tax credits. The American Recovery and Reinvestment Act would extend for three years, through December 31, 2012, the placed-in-service date for wind facilities and allow facilities placed in service in 2009 and 2010 to elect the investment tax credit in lieu of the production tax credit. These provisions are also included in the House version of the economic recovery legislation, which was introduced last week and passed by the Ways and Means Committee yesterday. The Senate Finance Committee is scheduled to hold a hearing on the American Recovery and Reinvestment Act on January 27.
Tune in to the Tax Credit Tuesday podcast on January 27 to hear Michael J. Novogradac, CPA, discuss the latest developments in the ongoing consideration of the Senate and House economic recovery proposals.