As previously discussed in our blog Inflation Reduction Act: Wage and Apprenticeship Requirements, the Inflation Reduction Act (the “IRA”) restructured the tax credit system associated.
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.
The 10% ITC would also apply to projects that commenced construction in prior years but did not meet the placed-in-service deadline.
Given that the 2019 Bill did not provide any extensions for claiming ITCs with respect to solar projects, these changes mark a welcomed development for the solar industry. Notably, the Extenders Bill coincides with the increasing competiveness of the solar energy industry, paving the way for a continued solar boom.
Although the placed-in-service date for such projects was extended by two years to December 31, 2025, we expect that developers of projects that commenced construction during or prior to 2020 will nevertheless strive to cause such projects to be placed-in-service for tax purposes prior to 2025, in order to meet the four-year continuity safe harbor provided by the IRS in several of its notices ( Continuity Safe Harbor ).
Climate Policy in the End-of-Year Legislative Package Tuesday, December 29, 2020
Late Sunday, President Trump signed into law H.R. 133, the legislative package containing Coronavirus relief, the Fiscal Year 2021 Omnibus bill, and the Energy Act of 2020 the largest energy package to be enacted into law in over a decade. This sweeping legislation, nicknamed the “Coronabus,” contains a number of climate-related provisions, including those outlined below.
Hydroflurocarbons Phasedown
The package includes a compromise deal to wind down hydrofluorocarbons (HFCs) over a 15-year period, under a program administered by the United States Environmental Protection Agency (EPA). This is the first legislation mandating a national phasedown of HFCs, although the EPA has overseen similar programs for other greenhouse gas emissions. The bill requires a reduction of HFC production and consumption to approximately 15 percent of their 2011-2013 level by 2036, and includes a narr