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 ).
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On Monday, December 21, 2020, the United States Congress passed a second large stimulus bill[1] (the “Relief Bill”) aimed at curtailing the economic disruptions caused by COVID-19. The Relief Bill, among other things, extends renewable energy tax credits for wind projects, solar projects and carbon capture and sequestration and contains specific provisions addressing offshore wind farms. These extensions include a one-year extension for wind projects, a two-year extension for solar projects and a two-year extension for carbon capture and sequestration projects.
Wind Tax Credits
Section 45 of the Internal Revenue Code (the “Code”) allows a production tax credit (“PTC”) against federal income tax for electricity produced by a taxpayer at a “qualified facility” during the 10-year period beginning on the date such facility is originally placed in service. A “qualified facility” includes wind facilities. T
Congress unveils 2020 energy tax extenders lexology.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from lexology.com Daily Mail and Mail on Sunday newspapers.
On Monday, December 21, 2020, the United States Congress passed a second large stimulus bill
[1] (the “Relief Bill”) aimed at curtailing the economic disruptions caused by COVID-19. The Relief Bill, among other things, extends renewable energy tax credits for wind projects, solar projects and carbon capture and sequestration and contains specific provisions addressing offshore wind farms. These extensions include a one-year extension for wind projects, a two-year extension for solar projects and a two-year extension for carbon capture and sequestration projects. President Trump is expected to sign the Relief Bill and has until December 28, 2020 to do so, when the current stopgap funding measure expires.
Solar and Wind Tax Credits Extended, Again lexology.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from lexology.com Daily Mail and Mail on Sunday newspapers.