IRS Notice Clarifies PTC Issues

Thursday, May 5, 2016 - 10:30am

The Internal Revenue Service (IRS) issued a notice today that updates previous guidance on the begin-construction date and when a facility must be placed in service to claim the renewable energy production tax credit (PTC) following the passage of the Protecting Americans from Tax Hikes (PATH) Act of 2015. The notice extends and clarifies that a facility satisfies the continuity safe harbor if it is placed in service no more than four calendar years after the calendar year during which construction began. Notice 2016-31 also clarifies that the five percent safe harbor can be applied for retrofitted facilities only to expenditures related to new property used to retrofit.