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Renewable Energy Tax Credits News Briefs - March 2016

The North Dakota Department of Revenue issued an Income Tax Newsletter Feb. 3 informing taxpayers of an extension on an income tax credit allowing for installing a biomass, geothermal, solar, or wind energy device in North Dakota. The extension is until Jan. 1, 2017, but only if the installation of the wind device commenced before Jan. 1, 2015. The extension was effective Jan. 1.

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The North Carolina 35 percent renewable energy investment tax credit expired Jan. 1. The North Carolina General Assembly did not extend the tax credit in the 2015 session, but lawmakers added a safe harbor amendment allowing renewables developers to obtain the tax benefit if they meet certain requirements. The safe harbor amendment required investors in projects of more than 65 megawatts to show more than 50 percent of the project was complete. Those with smaller projects had to show they were more than 80 percent complete. The North Carolina Department of Revenue received 201 applications for $938 million in energy tax credits under the safe harbor amendment.

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The New Mexico House Energy and Natural Resources Committee approved a bill Jan. 25 that would extend state tax incentives for residential solar systems. The legislation to extend the credit for eight years through 2024, with a gradual phase down, staying at 10 percent until 2019, and then dropping 1 percent per year until it reaches 5 percent in the year 2024. The tax credit would expire in 2025. Without the extension, the solar credit will expire at the end of this year. Currently, there is a $2 million cap on solar thermal systems and a $3 million cap for photovoltaic systems. The bill proposes to combine the caps to make an aggregate $5 million available, without separate caps for the two types of solar facilities. The bill must pass both the House and Senate in order to reach the governor’s desk. H.B. 26 is available at www.energytaxcredits.com.

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The U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) announced Feb. 8, the completion of five years of work dedicated toward helping establish an international quality standard for manufacturing photovoltaic (PV) modules. The new standard appears in “Terrestrial Photovoltaic (PV) Modules–Guidelines for Increased Confidence in PV Module Design Qualification and Type Approval.” The standard was jointly developed by the International Electrotechnical Commission (IEC) and the International PV Quality Assurance Task Force (PVQAT). The standard supplements the existing ISO-9001. The guidelines cover how to test PV modules for adequate durability for the chosen climate zone and mounting configuration, how to obtain IEC certification and implement an ongoing reliability test program that monitors the performance of PV modules and how to improve product traceability through the entire supply chain in the case of recalls or warranty claims.

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On Jan. 26, Churchill Stateside Group LLC, a real estate and energy financial services company, announced the closing of its tax credit equity fund for the development of 28 megawatts of solar energy projects in North Carolina. Churchill Stateside NC Tax Credit Fund IV LLC financed five solar energy projects commissioned in December 2015.

Journal Category:

Renewable Energy Tax Credits

Authors:

Novogradac

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