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IRS Releases Proposed Regulations on Section 30C ITC for Electrical Vehicles and Alternative Fuel Refueling Property

The Inflation Reduction Act of 2022 (IRA) amended Section 30C of the Internal Revenue Code to allow taxpayers to claim a credit of up to 30% of the cost of qualified alternative vehicle refueling property (including electric...more

IRS Issues New Safe Harbor for 10% Domestic Content Bonus

On May 17, 2024, the IRS released Notice 2024-41, which provides new safe harbors for determining certain energy projects’ qualification for the 10% domestic content bonus under the production tax credit (PTC) and investment...more

IRS Refreshes and Codifies Energy Property Tax Credit Guidance in Proposed Section 48 Regulations

On Nov. 17, 2023, the IRS and Treasury Department released a series of proposed regulations for the Section 48 investment tax credit (ITC) that the energy market has anticipated for nearly a decade. These proposed rules...more

IRS Proposes Prevailing Wage and Apprenticeship Regulations

On Aug. 29, 2023, the U.S. Department of the Treasury and the IRS released comprehensive proposed regulations adding clarity to the prevailing wage and apprenticeship (PWA) prerequisites associated with eligibility for...more

IRS Issues Guidance for Direct Payments of Energy Tax Credits

The Inflation Reduction Act of 2022 created new opportunities both in renewed and brand-new energy tax credits. It also offered new methods through which these credits can be claimed, as a Section 6417 direct payment to...more

IRS Issues Guidance Transferability Energy Tax Credits

The Inflation Reduction Act of 2022 created new opportunities both in renewed and brand-new energy tax credits. It also offered new methods through which these credits can be claimed, as a Section 6417 direct payment to...more

IRS Issues More Guidance for Section 48C Advanced Energy Project Tax Credit Allocation Program

The Inflation Reduction Act of 2022 (IRA) extended and modified a federal investment tax credit for advanced energy manufacturing projects under Section 48C of the Code. Section 48C provides incentives for clean energy...more

Domestic Content 10% Bonus Guidance Released (IRS Notice 2023-38)

The Inflation Reduction Act of 2022 (IRA) created a 10% tax credit adder to encourage the use of “domestic content” in renewable projects that qualify for the production tax credit (PTC) and investment tax credit (ITC)....more

IRS Issues Guidance for Energy Community Bonus Tax Credits – Notice 2023-29

The Inflation Reduction Act of 2022 (IRA) created several new tax incentives to encourage the development of clean energy projects that would benefit specific communities. Among these incentives, Congress included a tax...more

Energy Credits — Treasury, IRS Promise Direct Pay and Transferability Registry and Guidance

Direct pay and transferability for energy tax credits have been available since Jan. 1, 2023, but credit transactions using these provisions have been slow to materialize due to lack of Treasury or IRS guidance. On March 22,...more

IRS Issues Guidance for Energy Tax Credits in Low-Income Communities – Notice 2023-17

The Inflation Reduction Act of 2022 (IRA) created several new tax incentives to encourage developing clean energy projects that would benefit underserved communities and individuals. Among these incentives, Congress included...more

IRS Issues Prevailing Wage and Apprenticeship Guidance — Starts 60-Day Clock

The Inflation Reduction Act of 2022 (IRA) created many new and revised tax incentives to develop clean energy projects. Among many of these incentives, Congress included a requirement that taxpayers meet prevailing wage and...more

IRS Further Extends Continuity Safe Harbor for 2016 and Later Renewable Energy Projects

On June 29, 2021, the IRS issued Notice 2021-41, providing taxpayers additional relief for purposes of satisfying the beginning-of-construction requirement for qualifying production tax credit (PTC) and investment tax credit...more

Carbon Capture Tax Credits — IRS Issues Final Treasury Regulations

The U.S. Department of the Treasury and IRS recently issued final regulations regarding carbon capture tax credits under section 45Q of the Internal Revenue Code, which amend and clarify the proposed regulations issued last...more

Continuity Safe Harbor Extended for Offshore Wind, Renewable Energy Projects on Federal Land

The IRS recently issued Notice 2021-05, which extends the continuity safe harbor to 10 years for offshore wind projects and renewable energy projects constructed on federal land. Under prior IRS guidance, most renewable...more

IRS Proposes Regulations for Carbon Capture Tax Credit

On May 28, 2020, the IRS issued proposed regulations regarding carbon capture tax credits under Section 45Q of the Internal Revenue Code. The proposed regulations provide rules on secure geological storage, credit recapture,...more

Wind PTC and Solar ITC Gain COVID-19 Construction Relief From IRS

On May 27, 2020, the Internal Revenue Service issued Notice 2020-41, providing taxpayers with relief for purposes of satisfying the beginning-of-construction requirement for qualifying production tax credit (PTC) and...more

IRS Provides Carbon Capture Tax Credit Guidance and Safe Harbor

On Feb. 20, 2020, the IRS issued Notice 2020-12 and Revenue Procedure 2020-12 regarding carbon capture tax credits (IRC Section 45Q). Notice 2020-12 (the begin construction notice) provides guidance to determine when...more

Lawmakers to Vote on Tax Extenders Package: One-Year PTC Extension for Wind? Resurrected PTCs for Orphaned Tech?

On Dec. 17, 2019, the U.S. House of Representatives reached an agreement on a year-end tax package, which would extend or renew certain expired or expiring tax credits and other tax incentives. Some tax credits that had...more

2019 Tax Credit Inflation Adjustment Factor: 2.5 Cents per kWh for Wind Facilities

The Internal Revenue Service recently published its annual notice providing the inflation adjustment factors and reference prices used in determining the amount of production tax credits (PTCs) for renewable energy and...more

Beginning Construction Continuity Safe Harbor Extended for National Security Concerns

Earlier this month, the Internal Revenue Service issued Notice 2019-43, which modifies guidance provided in prior Notices 2013-29, 2013-60, 2014-46, 2015-25, 2016-31, 2017-04 and 2018-59 to provide that the continuity safe...more

Carbon Sequestration Tax Credits - IRS Requests Comment on Section 45Q Regulations

In February 2018, the tax credit for carbon capture and sequestration under Section 45Q of the Internal Revenue Code (the carbon sequestration credit) received a significant boost from Congress in the Bipartisan Budget Act of...more

New Opportunities Follow Expansion of Section 45Q Carbon Sequestration Credits

The recent enactment of the Bipartisan Budget Act of 2018 extended and significantly expanded the existing tax credit for carbon sequestration under Section 45Q of the Internal Revenue Code. Although the Section 45Q credit...more

IRS Provides Solar ITC Guidance on the Begin-Construction Requirement

On June 22, the IRS issued Notice 2018-59, providing guidance to determine when construction has begun on energy facilities, for purposes of the Section 48 investment tax credit. The long-awaited guidance follows changes...more

IRS Extends Safe Harbor for Completion of PTC-Qualifying Facilities to Jan. 2017

Yesterday, March 11, 2015, the Internal Revenue Service issued Notice 2015-25, which extends by one year certain tests taxpayers can use to establish that a qualifying renewable energy facility is eligible for the production...more

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