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IRS Announces New PTC Rate under Section 45

The IRS yesterday released Announcement 2022-23, which sets forth the new rate for the production tax credit (PTC) under Section 45 for facilities that are placed in service after December 31, 2021. The rate is 2.75 cents per...more

IRS Requests Comments on Various Aspects of Energy Tax Credits

On October 5, 2022, the U.S. Internal Revenue Service (IRS) issued six notices requesting comments on various aspects of extensions and enhancements of energy tax benefits in the Inflation Reduction Act. Here is list of, and...more

Tax Credits for Electric Vehicles: What’s Changed with the US IRA?

President Biden signed the Inflation Reduction Act of 2022 (the “IRA”) into law on August 16, 2022. Among other things, the IRA expands the federal income tax credits available to promote the development and use of renewable...more

The US Inflation Reduction Act, Solar and REITs

The Inflation Reduction Act of 2022 (the “IRA”), which was signed into law on Tuesday, August 16, 2022, includes an investment of over $369 billion in energy security and climate change. There has been a lot of discussion...more

The Green Energy Tax Incentives of the Inflation Reduction Act of 2022

Last Wednesday night, after weeks of negotiations, US Senators Joe Manchin and Chuck Schumer reached a deal on an energy and healthcare bill titled the Inflation Reduction Act of 2022 (the “Act”). The Act includes extensive...more

UPDATED: IRS Releases 2022 Section 45 Production Tax Credit Amounts

On April 14, 2022, the US Internal Revenue Service (IRS) published a notice that provides the inflation-adjustment factor and reference price for the calculation of renewable electricity production tax credits (PTCs) under...more

IRS Releases 2022 Section 45 Production Tax Credit Amounts

On April 14, 2022, the US Internal Revenue Service (IRS) published a notice, which provides the inflation-adjustment factor and reference price for the calculation of renewable electricity production tax credits (PTCs) under...more

US Offshore Wind Development: 2021 Year in Review and Looking Ahead

The new year has only just begun, and it is already shaping up to be another exciting one for the energy transition. In the US and elsewhere, governments, traditional and non-traditional energy corporations, and investors are...more

US House Rules Committee Modifies the “Build Back Better Act”

In less than a week, the Rules Committee of the US House of Representatives (the “Rules Committee”) released two versions of modified legislative text of H.R. 5376, the Build Back Better Act. The first version was released on...more

US House Ways and Means Committee Proposes Substantial Green Energy Support

On the night of September 10, 2021, the House Ways and Means Committee (the “Committee”) released legislative text covering a range of green energy tax incentives (the “Bill”) that it hopes will be enacted through the budget...more

Energy Storage Tax Credits in the Biden Administration FY 2022 Budget, GREEN Act and Clean Energy for America Act

As the renewable energy sector has grown in recent years, thanks in part to federal income tax credits, researchers and policymakers have begun to focus on the role of energy storage. Because wind and solar are intermittent...more

IRS Extends Start-of-Construction Relief for Renewables in Light of Continuing Effects of COVID-19

On June 29, 2021, the US Internal Revenue Service (the “IRS”) released Notice 2021-41 (the “Notice”), extending and enhancing previous relief given by the IRS pursuant to Notice 2020-41 (the “Previous Notice”) on the...more

Energy Tax Implications of the Administration’s FY2022 Budget Tax Proposals

On May 28, 2021, the Biden administration (the “Administration”) released its FY2022 budget (the “Budget”), which includes proposed investments related to infrastructure, clean energy and research and development. Alongside...more

IRS Releases 2021 Section 45 Production Tax Credit Amounts

On May 24, 2021, the US Internal Revenue Service (IRS) released Notice 2021-32, which provides the inflation-adjustment factors and reference prices for the calculation of renewable electricity production tax credits (PTCs)...more

Anti-Renewables Legislative Proposals in Texas

There are several state legislative proposals in Texas that could have adverse impacts on the development and operation of renewable energy projects in Texas....more

IRS Offshore Wind Guidance is Officially Published with a Material Tweak

On December 31, 2020, the IRS released Notice 2021-05 (the “Notice”) on its website, in its advance of its official publication. As discussed in our earlier blog post, the Notice provides favorable guidance for offshore...more

Solar and Wind Tax Credits Extended, Again

On Monday, December 21, 2020, the United States Congress passed a second large stimulus bill (the “Relief Bill”) aimed at curtailing the economic disruptions caused by COVID-19. ...more

IRS Grants Beginning of Construction Relief for Offshore Renewable Projects and Renewable Projects on Federal Land

On December 31, 2020, the US Treasury Department and the Internal Revenue Service (the “IRS”) issued Notice 2021-05 (the “Notice”), which provides relief for offshore renewable energy projects and renewable projects...more

Solar and Wind Tax Credits Extended, Again

On Monday, December 21, 2020, the United States Congress passed a second large stimulus bill (the “Relief Bill”) aimed at curtailing the economic disruptions caused by COVID-19. The Relief Bill, among other things, extends...more

Covid-19 Relief Legislation to Have Extenders for Renewables

Last night, Congressional leaders announced an agreement on a $900 billion COVID relief bill. While the text of the bill has not been released as of this writing, people familiar with the negotiations have indicated that the...more

IRS Provides Start-of-Construction Relief for Renewables in Light of COVID-19

On May 27, 2020, the US Internal Revenue Service (the “IRS”) released Notice 2020-41 (the “Notice”), updating the IRS guidance on the start-of-construction rules for the production tax credit (“PTC”) and energy investment tax...more

IRS Releases 2020 Section 45 Production Tax Credit Amounts

On May 12, 2020, the US Internal Revenue Service (IRS) released a notice providing the inflation-adjustment factors and reference prices for the calculation of renewable electricity production tax credits (PTCs) under...more

Treasury to Extend Continuity Safe Harbor

The U.S. Department of Treasury plans to modify the rules regarding the continuity safe harbor for the start-of-construction rules under Treasury guidance for the production tax credit (PTC) and energy investment tax credit...more

COVID-19: CARES Act Fails to Address Renewable Energy Industry’s Concerns But Path Forward with the IRS Remains

Background - As the COVID-19 pandemic continues to disrupt project development timelines generally, solar and wind projects that rely on federal income tax credits to obtain financing are particularly sensitive to...more

Hawaii: Solar System is Not Placed in Service Until All State Law Requirements Have Been Satisfied

In September, the State of Hawaii Department of Taxation issued a letter ruling (Hawaii Letter Ruling No. 2018-01) that clarified the “placed in service” requirement in the application of the Renewable Energy Technologies...more

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