IRS UPDATES OPEN-LOOP BIOMASS GUIDANCE
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.