In a letter dated May 7, 2020 to a bipartisan group of senators, the Treasury Department has indicated that it plans to modify the continuity safe harbor for tax credits on wind and solar projects currently under construction. The senators had urged Treasury to extend the safe harbor from four years to five in order to address concerns that wind and solar projects currently under construction may lose anticipated tax credits due to market disruptions caused by COVID-19, but Treasury’s letter lacks specifics. We are monitoring this development closely and will provide an update on the details of these safe harbor extensions when available.
