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Renewable Energy Tax Credits News Briefs - December 2016

In mid-October, the Lawrence Berkeley National Laboratory (LBNL) released the report, “U.S. Energy Service Company Industry: Recent Market Trends,” (ESCO). The ESCO report shows that about half of U.S. energy service companies used tax credits during the period studied. This includes energy savings projects, retrofitting, energy conservation and power generation and energy supply. LBNL found that across all market sectors from 2012 through 2014, more than 50 percent of U.S. energy service companies in the report said they use tax benefits. This includes such things as the renewable energy investment tax credit (ITC) and the production tax credit (PTC). The percentage of use was highest for state and local projects and for educational projects. The report also found that U.S. ESCOs saw revenues flatten from 2011 through 2014. However, the companies expect industry revenues to grow by about 13 percent per year during the next few years. ESCOs are energy service companies for whom performance-based contracting is a core business offering. The report is available at www.energytaxcredits.com.

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The Iowa Department of Revenue’s updated Iowa Administration Code Section 701–52.27 was effective Nov. 16. The code relates to tax credits for purchasers and producers of renewable energy, and was updated to reflect recent law. Amendments were made to provisions relating to the tax credit application process, calculation, certificate issuance, allocation and limitations and allocation of the tax credit for taxpayers that are partnerships, limited liability companies, S corporations, or estates or trusts. The amendments also clarified the language regarding the limitations period during which eligible facilities may claim the credit.

Journal Category:

Renewable Energy Tax Credits

Authors:

Novogradac

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