PLR Determines Two Renewable Energy Facilities Do Not Meet Criteria for Public Utility Properties

Tuesday, March 1, 2022 - 10:00am

The Internal Revenue Service (IRS) published a private letter ruling last week that two solar energy facilities will not be public utility properties within the meaning of former Section 46(f) and Section 168(i)(10). PLR 202208005 determined the facilities did not meet one of three requirements to be considered public utilities, which requires energy produced to be sold at rates determined on a rate-of-return basis. PLRs are directed only to the taxpayer requesting them and may not be used or cited as precedents.

Learn more about renewable energy tax credits at the Novogradac 2022 Spring Renewable Energy and Environmental Tax Credits Conference from May 19-20 in Denver.