Recent News

Tuesday, November 29, 2022

The Internal Revenue Service (IRS) will publish a notice in Wednesday’s Federal Register providing guidance on the prevailing wage and apprenticeship requirements that allow bonus credit percentages for certain renewable energy provisions of the Inflation Reduction Act (IRA). The notice also provides guidance for determining the beginning of construction date for certain credits. Under the IRA, properties that meet prevailing wage and apprenticeship requirements qualify for the 30% renewable energy investment tax credit (ITC) and the $26 per megawatt-hour production tax credit (PTC).

Friday, November 11, 2022

Taxpayers must have profit as a primary objective of a venture to receive tax benefits that include renewable energy investment tax credits (ITCs), according to a decision issued this month by the U.S. Circuit Court of Appeals for the Tenth Circuit. The court upheld a lower court’s ruling that denied ITCs and depreciation deductions to a taxpayer, ruling that those benefits require a profit motive. The taxpayer entered a sale-and-leaseback transaction for solar lenses in a system that was never finished, yet the taxpayer claimed depreciation deductions and ITCs on the full price of the lenses, rather than the 30% that the taxpayer paid. The IRS ruled that the taxpayer lacked a profit motive and denied the depreciation deductions and ITCs.

Thursday, November 10, 2022

The Internal Revenue Service (IRS) today issued an announcement with updated credit amounts for the renewable energy production tax credit (PTC) for facilities placed in service after Dec. 31, 2021. The changes are due to the Inflation Reduction Act. Announcement 2022-23 replaces the amounts published in Notice 2022-20 for those facilities. The total for such facilities is 2.75 cents per kilowatt hour for qualified energy resources of wind, closed-loop biomass, geothermal energy and solar energy. It is 1.25 cents per kilowatt hour on the sale of electricity produced by a qualified open-loop biomass, landfill gas, trash, qualified hydropower or marine and hydrokinetic renewable energy facilities.

Thursday, November 3, 2022

The U.S. Department of the Treasury today issued three notices requesting public input on climate and clean energy incentives included in the Inflation Reduction Act, following six notices issued in October. Notice 2022-56 requests comments related to commercial clean vehicles and alternative fuel vehicle refueling property, Notice 2022-57 requests comments related to the credit for carbon capture and Notice 2022-58 requests comments related to clean hydrogen and clean fuel production. Those interested in providing feedback should follow instructions in the notices and send responses by Dec. 3.

Wednesday, October 5, 2022

The U.S. Department of the Treasury today issued six notices seeking public input on climate and clean energy incentives including renewable energy tax credits (RETCs) such as the production tax credit (PTC) and investment tax credit (ITC) related to the Inflation Reduction Act (IRA) passed in August. The notices, which cover energy generation incentives, credit enhancements, incentives for homes/buildings, consumer vehicle credits, manufacturing credits and credit monetization, request input on specific questions as well as solicit general comments. Further opportunities for public input will come at later dates. Today’s release also includes a fact sheet with additional information about the notices and the Internal Revenue Service’s plan for implementation. Treasury requested responses for the six proposals released today by Nov. 4.

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