Earlier yesterday, the IRS released Notice 2015-25, 2015-13 IRB 1, which updates the guidance provided in Notice 2013-29, 2013-1 C.B. 1085, Notice 2013-60, 2013-2 C.B. 431, and Notice 2014-46, 2014-36 I.R.B. 520 (collectively, the "Begun Construction Guidance").

In order to reflect the one-year extension of when construction must begin for purposes of the renewable electricity production tax credit under section 45, or the energy investment tax credit under section 48, Notice 2015-25 provides that all references to January 1, 2014 in the Begun Construction Guidance are replaced with January 1, 2015. Accordingly, if a taxpayer can establish that it meets either the significant physical work test or the 5 percent safe harbor found in the Begun Construction Guidance prior to January 1, 2015, the taxpayer can establish the beginning of construction.

Similarly, Notice 2015-25 provides that the continuous construction/continuous efforts safe harbor found in the Begun Construction Guidance is updated such that if a qualifying facility is placed in service prior to January 1, 2017, the facility will be considered as having satisfied the continuous construction test or the continuous efforts test.

For additional details, please see the firm's prior coverage, "Tax Extenders Signed into Law: Production Tax Credit Extended for Facilities Beginning Construction in 2014," posted December 19, 2014, and "IRS Clarifies 'Begun Construction' Guidance," posted August 11, 2014.