The three major federal bank regulatory agencies today issued a joint notice of proposed rulemaking to strengthen and modernize Community Reinvestment Act (CRA) regulations. The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Fed) and Federal Deposit Insurance Corporation (FDIC) jointly issued the proposal, which would be the first significant interagency revision to the CRA since 1995. The proposal would adopt a metrics-based approach to CRA evaluation of retail lending and community development financing that includes public benchmarks. The rule would also clarify eligible CRA activities that are focused on low- and moderate-income, rural and underserved communities, including affordable housing.
A bill introduced Tuesday in the U.S. House of Representatives aims to boost offshore wind construction and manufacturing through the investment tax credit (ITC) and production tax credit (PTC). H.R. 7388, The Offshore Wind American Manufacturing Act, would create a 30% ITC for qualified facilities that manufacture offshore wind components through Dec. 31, 2028, followed by a reduction of 30% for property placed in service in 2029, 65% for property placed in service in 2030 and 100% for property placed in service after Dec. 31, 2030. The bill would also create a new PTC that would range from approximately 2 to 5 cents per watt multiplied by the total rated capacity of the turbine, with components such as blades, towers, generators, gearboxes and foundations contributing to variable factors.
Legislation introduced in the Massachusetts House of Representatives would create a state investment tax credit (ITC) of up to 50% for capital investment in large offshore wind facilities. H.B. 4524 would create the state ITC for offshore wind facilities that cost at least $50 million and employ at least 200 new full-time employees by their fifth year. The state credit would be taken over five years and the annual statewide cap for the offshore wind credits would be $50 million.
The Internal Revenue Service (IRS) published a private letter ruling last week that two solar energy facilities will not be public utility properties within the meaning of former Section 46(f) and Section 168(i)(10). PLR 202208005 determined the facilities did not meet one of three requirements to be considered public utilities, which requires energy produced to be sold at rates determined on a rate-of-return basis. PLRs are directed only to the taxpayer requesting them and may not be used or cited as precedents.
The Internal Revenue Service (IRS) published a private letter ruling last week that a solar energy facility owned by a taxpayer is not a public utility property and the taxpayer is not subject to the normalization rules of Internal Revenue Code (IRC) Section 168(i)(9) or former Section 46(f). IRC Section 168(i)(9) governs the normalization method of accounting for any public utility property, and IRC Section 46(f) stipulates the amount of credits.
May 9, 2022 5:20am
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