Energy Tax Credit News Archive:

Novogradac archives Ad.

2011

December

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.

November

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.

October

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.

September

BILL WOULD ACCELERATE DEPRECIATION SCHEDULE FOR ENERGY-EFFICIENT ROOFS

WASHINGTON, D.C. - September 22, 2011

Sen. Ben Cardin, D-Md., on Monday introduced S. 1575, the Energy-Efficient Cool Roof Jobs Act. The legislation provides economic incentives to upgrade and modernize commercial roofs by reducing the depreciation schedule for commercial roof retrofits. S. 1575 would allow commercial roofs that meet certain energy-efficiency standards and that are placed in service within the next two years to be depreciated over 20 years, instead of the standard 39-year depreciation period. Cardin says the bill’s passage would accelerate the adoption of energy-efficient roofs and create as many as 40,000 construction jobs.

August

GOVERNORS URGE SEVEN-YEAR EXTENSION FOR PTC, ITC

ARLINGTON, VA. - August 25, 2011

Twenty-four state governors have asked the Obama Administration to extend the investment tax credits and production tax credits for renewable energy for seven years. The governors, members of the bipartisan Governors’ Wind Energy Coalition, sent a letter on July 20 asking the administration to establish a combined intergovernmental state-federal task force on wind energy development, restore collaboration on wind deployment and expand technology development, improve siting collaboration, expedite offshore wind deployment, identify transmission priorities for power marketing administrations and release completed U.S. Department of Energy analytical information.

July

GEOTHERMAL TAX PARITY ACT INTRODUCED IN SENATE

WASHINGTON, D.C. - July 27, 2011

Sens. Ron Wyden and Mike Crapo on Monday introduced S. 1413, the Geothermal Tax Parity Act of 2011. The bill temporarily increases the investment tax credit (ITC) for geothermal energy property. S. 1413 would increase to 30 percent the ITC for geothermal projects through December 31, 2016. The bill has been referred to the Committee on Finance. The House of Representatives introduced two companion bills, H.R. 1384 and H.R. 2408, earlier this year.

BILL INTRODUCED TO BOOST OFFSHORE WIND ENERGY PRODUCTION

WASHINGTON, D.C. - July 22, 2011

Sens. Tom Carper, D-Del., and Olympia Snowe, R-Maine, yesterday introduced S. 1397, the Incentivizing Offshore Wind Power Act, to provide financial incentives for investing in offshore wind energy. The bill would extend investment tax credits for the first 3,000 megawatts (MW) of offshore wind facilities placed in service. The senators say the credit is vital for offshore wind energy technology because there is a much longer lead time for the permitting and construction of those projects. 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 S. 1397 will be posted to the Renewable Energy Legislation page as soon as it is available.

SEN. COBURN PROPOSES ELIMINATING LIHTC, NMTC, HTC AND RETCs

WASHINGTON, D.C. - July 19, 2011

Sen. Tom Coburn, R-Okla., yesterday released the proposal “Back in Black: A Deficit Reduction Plan,” his outline for the federal government to reduce the deficit by $9 trillion over the next 10 years. The 614-page plan calls for the elimination of nearly $1 trillion in tax expenditures in a section entitled “Reforming Tax Expenditures & Ending Special Giveaways.” Among other tax incentives, the proposal would eliminate the low-income housing tax credit (LIHTC), new markets tax credit (NMTC), historic preservation tax credit (HTC) and renewable energy tax credits (RETCs). 

Tune in to today’s Tax Credit Tuesday podcast to hear Michael J. Novogradac, CPA, discuss this proposal and its prospects within the context of the ongoing debt ceiling and deficit reduction talks in Washington, D.C.

June

TREASURY ISSUES NEW SECTION 1603 GUIDANCE

WASHINGTON, D.C. – June 30, 2011

The U.S. Department of the Treasury today issued guidance for evaluating cost basis for solar photovoltaic properties under the Section 1603 grant in lieu of energy tax credit program. The document, intended to assist with preparing Section 1603 applications, outlines the process and principles that Treasury uses to evaluate basis.

If you have questions about the new guidance or the Section 1603 program, please contact Stephen Tracy, CPA, at stephen.tracy@novoco.com or 415-356-8000.

RENEWABLE ENERGY INTEGRATION TAX CREDIT INTRODUCED

WASHINGTON, D.C. – June 27, 2011

Reps. Erik Paulsen, R-Minn., and Ronald Kind, D-Wis., on Friday introduced H.R. 2391, the Renewable Energy for a Brighter Future Act. H.R. 2391 provides a tax credit to integrate renewable energy, such as wind and solar, into the electric grid. The bill was referred to the Committee on Ways and Means and the Committee on Energy and Commerce. The text of the bill will be posted to the Renewable Energy Tax Credit Resource Center legislation page when it becomes available. Sens. Amy Klobuchar, D-Minn., and Timothy Johnson, D-S.D. plan to introduce similar legislation in the Senate.

April

TREASURY UPDATES GUIDANCE FOR SECTION 1603 PROGRAM

WASHINGTON, D.C. –April 14, 2011

The Treasury Department yesterday posted updated guidance for the Section 1603 grant in lieu of energy tax credit program, as well as an updated list of frequently asked questions about the 1603 program and their answers. Treasury says that Questions 32 through 37 are new; questions following those new FAQs have been renumbered. The new FAQs address a number of topics including the requirement that a separate application for Section 1603 must be submitted for each part of the facility that has a different ownership structure.

To discuss the updated program guidance with renewable energy industry experts, join Novogradac & Company at the Financing Renewable Energy Conference, April 28-29, in San Francisco, Calif.

In the meantime, tune in to the next Tax Credit Tuesday Podcast on April 19 to hear Michael J. Novogradac, CPA, discuss this topic and other breaking tax credit news.

March

STABENOW INTRODUCES SECTION 48C EXTENSION

WASHINGTON, D.C. – March 31, 2011

Sen. Debbie Stabenow, D-Mich., filed an amendment to S. 493 that would extend the Section 48C Advanced Energy Manufacturing Tax Credit program, which expired at the end of 2010. S. Amdt. 265 would allocate $5 billion in tax credits for 2011. BNA reports that Sen. Harry Reid, D-Nev., said that all votes on amendments would be postponed until March 31. On March 30, Sen. Rand Paul, R-Ky., made a motion to commit the bill to the Senate Committee on Foreign Relations and to report back with instructions.

This proposed Section 48C extension will be just one of the topics covered at the Financing Renewable Energy Conference, April 28-29, in San Francisco, Calif.

IRS RELEASES GUIDANCE ON BONUS DEPRECIATION

WASHINGTON, D.C. – March 29, 2011

The Internal Revenue Service (IRS) today released guidance on the 100 percent bonus depreciation from the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. In Revenue Procedure 2011-26 the IRS explains the eligibility requirements for qualified property to be eligible for the 100 percent additional first year depreciation deduction and provides the method for amending a 2009 tax return to include the qualified property. Rev. Proc. 2011-26 will be published in IRB-16, dated April 18, 2011.

BILL INTRODUCED TO INCREASE PTC FOR HYDROPOWER

WASHINGTON, D.C. – March 28, 2011

Sen. Lisa Murkowski, R-Alaska, on March 17 introduced a bill to increase the amount of production tax credits (PTCs) that hydroelectric energy projects could receive. S. 631, the Hydropower Renewable Energy Development Act, would ensure that hydroelectric energy is treated as renewable energy, extend the PTC to hydroelectric facilities and provide a five-year accelerated depreciation period for equipment that produces electricity from marine renewables and hydropower. Sen. Mark Begich, D-Alaska, co-sponsored the bill, which was referred to the Committee on Finance.

Tune into next week’s Tax Credit Tuesday podcast to learn more about the bill and what it could mean for hydroelectric projects. The production tax credit will be one of many topics discussed at the Financing Renewable Energy Conference, April 28-29, in San Francisco, Calif. Questions about the PTC? Call Stephen Tracy, CPA, at 415-356-8000.

IDAHO BILL WOULD PUT A MORATORIUM ON WIND PROJECTS

BOISE, Idaho – March 17, 2011

A bill to declare a two-year moratorium on wind development was introduced to the Idaho Legislature earlier this week. H.B. 265 would place a ban on the approval and construction of industrial wind farms and turbines until July 13, 2013, during which time an interim legislative committee would study various wind-related issues, including the effects of wind development on wildlife and the ability of the state's electrical utilities to integrate wind power, and provide recommendations to update the Idaho Energy Plan. The moratorium could also extend to wind projects that are already developed but have not received all required permits from municipalities.

BILL WOULD EXTEND ADVANCED ENERGY MANUFACTURING TAX CREDIT

Washington, D.C. – March 16, 2011

Sen. Sherrod Brown, D-Ohio, yesterday introduced legislation to renew the Section 48C Advanced Energy Manufacturing Tax Credit program. S. 591, the Security in Energy and Manufacturing (SEAM) Act, would renew the Advanced Energy Manufacturing Tax Credit program, which provides investment tax credits of 30 percent for facilities that manufacture energy equipment. To be eligible for the tax credit, manufacturers must produce solar, wind and geothermal energy equipment; fuel cells, microturbines and batteries; electric cars; electric grids; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions. The SEAM Act is cosponsored by Sens. Debbie Stabenow, D-Mich., Maria Cantwell, D-Wash., and Bob Casey, D-Pa. As soon as a copy of the bill is available, it will be posted on the Renewable Energy Legislation page. Tune in to the March 22 Tax Credit Tuesday podcast to hear more about S. 591 and the Section 48C program.

WIND PRODUCTION TAX CREDIT EXTENSION INTRODUCED IN HOUSE

Washington, D.C. – March 14, 2011

Rep. William "Mac" Thornberry, R-Texas, on March 10 introduced a bill that would extend the wind production tax credit (PTC) for 10 years. The No More Excuses Energy Act of 2011 (H.R. 1023), would extend the PTC until January 1, 2023. The bill, among other things, would also expand fossil fuel drilling in the Gulf Coast and Alaska. Upon introduction, H.R. 1023 was referred to the Committee on Natural Resources, Committee on Ways and Means, and the Committee on Energy and Commerce.

Tune in to next week’s Tax Credit Tuesday podcast for more information about H.R. 1023. The future of the production tax credit will also be one of numerous topics discussed at the Financing Renewable Energy Conference, April 28-29, in San Francisco, Calif.

ACORE RELEASES STATE RENEWABLE ENERGY REPORT

Washington, D.C. – March 8, 2011

The American Council On Renewable Energy (ACORE) released the Spring 2011 update of its report, Renewable Energy in America: Markets, Economic Development and Policy in the 50 States. ACORE found that in 2010 the total installed base of new renewable electricity exceeded 50 gigawatts in the United States, with Texas, California and Iowa leading in renewable energy generation capacity. The report also found that Texas and Illinois received the most Section 1603 and 48C funding from the federal government. The report also includes the amount of 1603 and 48C funding each state received.

Tune in to next week’s Tax Credit Tuesday podcast for more information about the report’s findings. State renewable energy projects will also be one of numerous topics discussed at the Financing Renewable Energy Conference April 28-29 in San Francisco, Calif.

February

BILL WOULD INCREASE FUNDING FOR RURAL ENERGY PROJECTS

Washington, D.C. – February 15, 2011

Rep. Jeff Fortenberry, R-Neb., on January 12 introduced a bill that would exempt Rural Energy for America Program (REAP) grants from the production tax credit (PTC) offset. The Rural Energy Equity Act of 2011 (H.R. 277) would exempt rural properties that receive PTCs from having their REAP funding reduced by up to 50 percent. The bill was referred to the House Committee on Ways and Means. Tune in to next week’s Tax Credit Tuesday podcast to hear more about the measure.

“MAKE IT IN AMERICA” ENERGY BILL INTRODUCED IN HOUSE

Washington, D.C. – February 4, 2011

Rep. John Garamendi, D-Calif., introduced legislation last week that would require 100 percent of all federal and state government-purchased clean energy goods and equipment to be manufactured in America. H.R. 487, the Manufacture Renewable Energy Systems: Make it in America Act, would require any company taking advantage of renewable energy production or investment tax credits to buy 100 percent American content within four years of the bill’s enactment. Rep. Garamendi says that H.R. 487 would ensure that taxpayer dollars are spent on American-made renewable energy systems.

PRESIDENT TO PROPOSE CONVERTING SECT. 179D DEDUCTION TO TAX CREDIT

Washington, D.C. – February 3, 2011

President Barack Obama today announced a Better Buildings Initiative designed to make commercial buildings 20 percent more energy efficient over the next decade by catalyzing private sector investment using incentives to upgrade commercial and municipal buildings. As part of the initiative, the White House announced that the president’s fiscal year 2012 budget will propose, under Internal Revenue Code Section 179D, reforming the current tax deduction for energy efficient commercial building upgrades by converting it to a more generous tax credit. The administration says this change could result in a ten-fold increase in commercial retrofits.

Tune in to the February 8 Tax Credit Tuesday Podcast to hear more about this proposal.

January

BILL WOULD EXTEND ITC TO SOLAR LIGHT PIPES

Washington, D.C. – January 27, 2011

Sen. Herb Kohl, D-Wis., on Tuesday introduced a bill to extend the Section 48 Investment Tax Credit to solar light pipe technology. S. 157 would amend the Internal Revenue Code of 1986 to provide a 30 percent investment credit for solar light pipes. Solar light pipes collect natural light and, using sensor technology, dim other lights in the building, which results in a reduction of the amount of electricity needed to produce light. The bill was referred to the Senate Committee on Finance. The text of the bill can be found in the Renewable Energy Tax Credit Resource Center.

BILL INTRODUCED TO ALLOW ITC FOR WASTE-TO-ENERGY PROJECTS

Washington, D.C. – January 10, 2011

Rep. Lloyd Doggett, D-Texas, reintroduced a bill in the new session of Congress last week to establish an investment tax credit for waste-to-energy facilities. H.R. 66, or the Waste-to-Energy Technology Act of 2011, is an updated version of H.R. 5856, which Doggett introduced in July of 2010. The proposal would provide $1 billion in investment tax credits for qualified waste-to-energy facilities, which are defined as properties comprising a system that uses municipal solid waste or municipal sewage sludge as the feedstock for producing certified solid, liquid or gas fuel.

Tune in to the January 18 Tax Credit Tuesday podcast to learn more about the proposed tax credit.