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Renewable Energy News Briefs - November 2020

Hawaii legislation effective Sept. 15 provides that for taxable years beginning Jan. 1, 2020, no renewable energy technologies tax credit can be claimed for a solar energy system that is 5 megawatts or larger in total output capacity and requires a power purchase agreement (PPA) approved by the public utilities commission (PUC). S.B. 2820 clarifies that those systems placed in service with a PPA approved or pending before Dec. 31, 2019, will continue to receive a tax credit for 35 percent of the actual cost or $500,000 per solar energy system with a total output capacity of at least 1,000 kilowatts per system of direct current, whichever is less. Solar energy systems integrated with a pumped hydroelectric energy storage system may still claim the credit, provided project approval filings have been made to the PUC by Dec. 31, 2021.

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Rep. Roger Williams, R-Texas, introduced a bill Oct. 6 to make permanent Internal Revenue Code Section 179D, which offsets the energy-efficient components and systems for commercial property, including multifamily affordable housing buildings. The Incentivizing Energy-Saving Improvement Act (H.R. 8547) would eliminate the current expiration date of Dec. 31 for the Section 179D provision, which allows a deduction equal to the cost of energy-efficient commercial property placed in service during the taxable year.

Journal Category:

Renewable Energy Tax Credits

Authors:

Novogradac

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