Renewable Energy Tax Credits News Briefs – July 2020

Wednesday, July 8, 2020

The Internal Revenue Service (IRS) issued a notice May 17 to extend the continuity safe harbor for renewable energy production tax credit (PTC) and investment tax credit (ITC) properties that began construction in 2016 or 2017. Notice 2020-41 adds an extra year to the four-year continuity safe harbor in existing guidance, stating that those projects placed in service within five years will be deemed continuous. The extension is due to industrywide delay in the supply chain caused by the COVID-19 pandemic. The notice also extended the 3½-month continuity safe harbor for taxpayers to satisfy the beginning-of-construction requirements to include any services or property received by Oct. 15, 2020. 

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According to a notice published May 13 by the IRS, the PTC for electricity produced by wind will remain 2.5 cents per kWh in 2020. The IRS notice specifies that the PTC for wind–as well as closed-loop biomass and geothermal energy–will stay at the same level as 2019. The notice includes PTC amounts for various other sources of energy. 

Journal Category: 
Renewable Energy Tax Credits
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