Renewable Energy News Briefs - February 2021
Sens. Todd Young, R-Indiana, and Sheldon Whitehouse, R-Rhode Island, introduced legislation Dec. 7, 2020, to include hydrogen as a resource eligible for the renewable energy production tax credit (PTC). The Hydrogen Utilization and Sustainability Act would add hydrogen to the list of PTC-eligible resources.
The Internal Revenue Service (IRS) published Notice 2020-88 in the Dec. 28, 2020, Internal Revenue Bulletin. In Notice 2020-88, the IRS says that $2.04 billion in credits are available for reallocation under the Section 48A Qualifying Advanced Coal Project program. Applications for the third phase of the Section 48A program must be submitted to the Department of Energy and the IRS on or before March 29.
The IRS issued guidance Dec. 31, 2020, to provide an extension of the safe harbor for taxpayers who are developing renewable energy projects offshore or on federal land. Notice 2021-5 provides flexibility for taxpayers using the PTC or investment tax credit (ITC) to finance their qualifying projects despite ordinary-course delays that threaten their ability to claim the credits. Properties located offshore or on federal land that are using the ITC have the beginning-of-construction deadline extended until Dec. 31, 2025, and the phaseout for the PTC doesn’t apply. The beginning-of-construction deadline is also extended to Dec. 31, 2025, for qualifying projects for which a taxpayer can elect to claim the ITC in lieu of the PTC.