Increasingly, utilities are replacing older generation fleets with more cost-effective generation technologies. Renewables are cost-competitive alternatives in this effort for a number of reasons, including the current tax...more
11/30/2020
/ Acquisitions ,
Energy Projects ,
Energy Sector ,
Financing ,
Investors ,
Land Developers ,
Renewable Energy ,
Tax Equity ,
Tax Incentives ,
Tax Planning ,
Utilities Sector ,
Webinars
The Treasury Department and IRS recently published proposed regulations implementing the Section 45Q carbon capture and sequestration credit. The regulations clarify some questions about the credit, though many questions...more
6/16/2020
/ Carbon Capture and Sequestration ,
Carbon Emissions ,
Energy Market ,
Energy Sector ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Popular ,
Proposed Regulation ,
Proposed Rules ,
Tax Credits ,
Tax Planning ,
Webinars
The Internal Revenue Service (IRS) has released a long-awaited proposed rule to implement section 45Q of the Internal Revenue Code, the statutory provision that creates a tax credit for capturing and sequestering carbon...more
The IRS yesterday released anticipated guidance extending the placed-in-service deadline for the Investment Tax Credit (ITC) and Production Tax Credit (PTC). Under Notice 2020-41, the “Continuity Safe Harbor” was extended to...more
Renewable energy project developers utilizing federal tax credits will likely get more time to complete work on projects. While more formal guidance is forthcoming, the renewables industry may see an extension of the safe...more
On Thursday, April 30, McDermott was joined by Brett Kerr, vice president of external affairs at Calpine, Drew Murphy, senior vice president of strategy and corporate development at Edison International, and Andrew Campbell,...more
McDermott continues to interact with industry leaders to provide the latest market updates on the severe disruption and uncertainty brought on the renewables industry by COVID-19.
Joining us on Thursday will be Brett Kerr,...more
4/28/2020
/ Coronavirus/COVID-19 ,
Crisis Management ,
Energy Sector ,
Health and Safety ,
Independent Power Producers (IPPs) ,
Investor-Owned Utilities ,
Operators of Essential Services ,
Renewable Energy ,
Supply and Demand ,
Utilities Sector ,
Webinars
McDermott continues to interact with industry leaders to provide the latest market updates on the severe disruption and uncertainty brought on the renewables industry by COVID-19.
Joining us next week to discuss whether...more
As the COVID-19 crisis continues to affect every corner of the economy, McDermott continues to interact with industry leaders to provide the latest market updates on the severe disruption and uncertainty brought on the...more
4/7/2020
/ Contract Terms ,
Coronavirus/COVID-19 ,
Energy Projects ,
Energy Sector ,
Popular ,
Project Finance ,
Renewable Energy ,
Safe Harbors ,
Solar Energy ,
Tax Equity ,
Tax Rates ,
Webinars ,
Wind Power
Treasury and the IRS released initial guidance on the amended Section 45Q carbon oxide sequestration credit on February 19, 2020. Notice 2020-12 and Revenue Procedure 2020-12 provide guidance relating to the beginning of...more
On December 20, 2019, President Donald Trump signed into law the Further Consolidated Appropriations Act, 2020 (H.R. 1865), which included welcomed extensions for a number of energy tax incentives.
The legislation includes...more
12/24/2019
/ Energy Projects ,
Energy Sector ,
Energy Tax Incentives ,
Investment Tax Credits ,
New Legislation ,
Production Tax Credit ,
Renewable Energy ,
Tax Credits ,
Tax Planning ,
Time Extensions ,
Trump Administration
The US Senate yesterday passed a package of tax extenders as part of the year-end appropriations act that the US House of Representatives passed on December 17, 2019. President Trump is expected to sign the legislation before...more
12/20/2019
/ Energy Sector ,
Energy Tax Incentives ,
Income Taxes ,
Investment Tax Credits ,
Investors ,
Production Tax Credit ,
Renewable Energy ,
Tax Extensions ,
Tax Incentives ,
Tax Planning ,
Wind Power
On December 17, 2019, the US House of Representatives passed a year-end fiscal year 2020 spending bill for the federal government that includes a one-year extension of the production tax credit under Section 45 (PTC) for wind...more
In Private Letter Ruling 201946007, the Internal Revenue Service (IRS) allowed a tax equity investor to participate with a regulated utility in a tax equity financing arrangement for wind investments without being subject to...more
12/3/2019
/ Energy Sector ,
Internal Revenue Code (IRC) ,
Investment Tax Credits ,
IRS ,
Popular ,
Private Letter Rulings ,
Production Tax Credit ,
Public Utilities Commission ,
Renewable Energy ,
Revenue Procedures ,
Safe Harbors ,
Tax Equity Partnership
On June 20, 2019, the United States Court of Federal Claims published its long-awaited opinion in California Ridge Wind Energy, LLC v. United States, No. 14-250 C. The opinion addressed how taxpayers engaging in related party...more
6/27/2019
/ 1603 Grants ,
Burden of Persuasion ,
Burden of Proof ,
Energy Sector ,
Evidence ,
Fees ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Land Developers ,
Renewable Energy ,
Tax Credits ,
Wind Farm
On July 27, 2018, the US Court of Appeals for the Federal Circuit in Alta Wind v. United States, reversed and remanded what had been a resounding victory for renewable energy. The US Court of Federal Claims had ruled that the...more
The IRS released Notice 2018-59 on June 22, providing guidance to taxpayers on how to begin construction on solar and other renewable energy projects. It provides a 4 year safe harbor period for solar projects to be placed in...more
The new Opportunity Zone tax incentive, intended to spur investments in distressed areas throughout the United States and its possessions, was included in the 2017 tax reform legislation. The incentive permits temporary and...more
Taxpayers are running out of time to file refund claims against the government. If the government reduced or denied your Section 1603 cash grant, you can file suit in the Court of Federal Claims against the government to...more
As of February 9, 2018, the Bipartisan Budget Act of 2018 retroactively extended many energy related credits that expired December 31, 2016. The Act extended the investment tax credit under Code §48 through 2022 (with...more
The tax bill passed by Congress on December 20, 2017, contains many improvements for renewable energy from the original House draft of the tax reform bill, including retaining existing credits and reducing the impact of the...more
On December 2, 2017, the Senate approved its version of the Tax Cuts and Jobs Act. The Senate Bill includes the base erosion and anti-abuse tax, a new tax intended to apply to companies that significantly reduce their US tax...more
A battery storage system added to a pre-existing wind facility is eligible for the investment tax credit, even if the facility has claimed the production tax credit. This is good news for taxpayers considering adding...more
Changes to the energy credits proposed in the Tax Cuts and Jobs Act could impact the eligibility of renewable energy projects that had been relying on the guidance previously issued by the Internal Revenue Service....more
President Trump released his budget proposal for the 2018 FY on May 23, 2017, expanding on the budget blueprint he released in March. The budget proposal and blueprint reiterate the President’s tax reform proposals to lower...more