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Renewable Energy Tax Credit News Briefs – December 2018

The Lawrence Berkeley National Laboratory (Berkeley Lab) released its sixth annual utility-scale solar report Sept. 20. The report analyzes technology trends, installed project prices, operating costs, capacity factors, power purchase agreement prices, the levelized cost of solar energy and the market value of solar. Berkeley Lab found that in 2017, the utility-scale sector accounted for nearly 60 percent of all new solar capacity and it is expected to maintain its market-leading position for at least another six years. In addition, the report states that two-thirds of all states are now home to one or more utility-scale solar projects and that at the end of 2017, there were at least 188.5 gigawatts of utility-scale solar power capacity within the interconnection queues across the nation. 

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The Hawaii Department of Taxation issued Letter Ruling No. 2018-01 Sept. 12. The ruling clarifies when a commercial solar energy system has been installed and placed in service for the purposes of the Renewable Energy Technologies Income Tax Credit. The taxpayer contracted to build a solar energy system which was briefly turned on for testing in December 2017. The department explained that case law dictates that the use of an asset during construction does not satisfy the placed-in-service requirement, nor does merely testing the system during construction. The government’s approval and grant of an operation permit usually indicates that the system has been placed in service and is ready and available for full operation. The ruling stated that the solar system was placed in service in 2018, not 2017, and therefore the testing performed in December 2017 is outweighed by the installation of the fence and the approval of all required permits in 2018. 

Journal Category:

Renewable Energy Tax Credits

Authors:

Novogradac

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