The Internal Revenue Service on Wednesday issued guidance extending the placed-in-service deadline for both the production tax credit for renewable energy facilities under section 45 of the Internal Revenue Code and the investment tax credit for energy property under section 48.
The new guidance gives wind and solar developers an extra year to meet so-called safe harbor requirements to qualify for the tax credits. The Treasury Department decision applies to projects that get under
The IRS notice is here.
“Treasury’s decision is welcome news for the renewable energy sector, which has been struggling with the government-mandated shutdowns along with the rest of the country,” said Robert Dillon, executive director of the Energy Choice Coalition. “This provides sorely needed flexibility for an industry that has lost an estimated 600,000 jobs in the past three months.”
The notice extends the safe harbor requirement from four to five years for projects that started construction in 2016 or 2017, which is beneficial for projects that have been delayed by supply chain or financing delays.