Novogradac Journal of Tax Credits Volume 11 Issue 11
Abridged version of the November 2020 issue of the Novogradac Journal of Tax Credits. For more content, please subscribe to the Journal.
Tax issues for individual investors in renewable energy projects are complex and the availability of the tax benefits for individuals investing in such projects are extremely fact specific, and therefore highly dependent on the individual’s particular tax and business situation.
The Internal Revenue Service (IRS) submitted final regulations Sept. 15 for publication in the Federal Register concerning the five-year period over which the federal historic tax credit (HTC) may be claimed, along with other special rules for investment credit property. Proposed regulations were published in May and adopted as final without modification.
Panelists at the Novogradac 2020 Historic Tax Credit Virtual Conference Sept. 24-25 discussed best practices and strategies for building a deal flow pipeline when using historic tax credits (HTCs). Panelists discussed the keys to building a successful pipeline, including the importance of relationships, things to look for in a development or developer, lessons learned and their outlook for the future of HTCs.
Question: After the new markets tax credit (NMTC) compliance period has concluded and an investor exercises its put option, what next steps can the community development sponsoring/purchasing organization expect to follow for a successful unwind of the transaction structure?
We are getting to the end of 2020, and the annual reduction of the Internal Revenue Code (IRC) Section 48 investment tax credit for solar and certain other renewables. This all depends upon when the project “began construction,” so it is probably a good time to review best practices for getting the maximum credit. As you plan your year-end strategy, here are 10 things to remember.
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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).
The Community Development Financial Institutions (CDFI) Fund published a notice of allocation availability in the Sept. 23 Federal Register, making $5 billion in new markets tax credit (NMTC) allocation authority available for the 2020 NMTC allocation round.
The Internal Revenue Service published final regulations in the Sept. 15 Federal Register concerning the five-year period over which the federal historic tax credit (HTC) may be claimed, along with other special rules for investment credit property.
The U.S. Department of Housing and Urban Development (HUD) published a notice in the Sept. 4 Federal Register announcing its desire to allow temporary uniform protocols for closing documents until after the COVID-19 pandemic subsides.