TREASURY’S BEGUN CONSTRUCTION CHECKLIST, SAFE HARBOR REPORT
The Treasury Department today posted two documents of interest to renewable energy properties that are not yet placed in service but that plan to apply a cash grant in lieu of tax credits under Section 1603 of the American Recovery and Reinvestment Act.
For property not placed in service in 2009 or 2010 but for which construction began in 2009 or 2010, applications must be submitted after construction commences but before October 1, 2011. An applicant can show that construction has begun by beginning work of a physical nature, or by meeting a 5 percent safe harbor. Today, Treasury provided a “Begun Construction” checklist for applicants to ensure they have all of the required documentation to apply a grant under Section 1603 using either of these approaches.
Projects relying on the 5 percent safe harbor that have an estimated eligible cost basis of $1 million or more must submit a report from an independent accountant by October 1, 2011 on the eligible costs of the specified energy property paid or incurred by December 31, 2010. This report may be in the form of an Agreed-Upon Procedures (AUP) report prepared by an independent accountant, or an examination report on the schedule of eligible costs paid or incurred by December 31, 2010. Today, Treasury also posted instructions and example findings for the AUP report.
Join Novogradac & Company for the Financing Renewable Energy Conference on Nov. 10-11, 2010 in Washington, D.C. to discuss this and other important topics related to the development of renewable energy properties.