Read our Legal Update on the final carbon capture regulations here.
Final Carbon Capture Regulations Released by IRS
The IRS today released final regulations under Section 45Q regarding the carbon capture tax credit. Here is a link to the final regulations.
IRS Grants Beginning of Construction Relief for Offshore Renewable Projects and Renewable Projects on Federal Land
On December 31, 2020, the US Treasury Department and the Internal Revenue Service (the “IRS”) issued Notice 2021-05 (the “Notice”), which provides relief for offshore renewable energy projects and renewable projects constructed on federal land. Specifically, the Notice allows the Continuity Safe Harbor to be satisfied for projects constructed offshore or on federal land if
Solar and Wind Tax Credits Extended, Again
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.
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Covid-19 Relief Legislation to Have Extenders for Renewables
Last night, Congressional leaders announced an agreement on a $900 billion COVID relief bill. While the text of the bill has not been released as of this writing, people familiar with the negotiations have indicated that the deal will extend renewable energy tax credits for wind and solar projects and the Section 45Q carbon capture
The GREEN Act: Proposed Pandemic Relief for Renewable Energy Industry
Read out latest client alert: The GREEN Act: Proposed Pandemic Relief for Renewable Energy Industry
California’s Split-Roll Initiative Would Have Major Implications for Solar
The split-roll initiative in California would result in major tax increases on solar projects and increase the price of green power by eliminating the concept of “new construction”, thereby making meaningless the exclusion for active solar energy systems. Read about the initiative in this #mayerbrown client alert.
Treasury and IRS Issue Proposed Regulations on Carbon Capture Credit
Treasury and the IRS have issued proposed regulations on the revised carbon capture credit under Section 45Q. The proposed regulations provide rules on secure geological storage, credit recapture, and transfer of the credit, among other things.
IRS Provides Start-of-Construction Relief for Renewables in Light of COVID-19
On May 27, 2020, the US Internal Revenue Service (the “IRS”) released Notice 2020-41 (the “Notice”), updating the IRS guidance on the start-of-construction rules for the production tax credit (“PTC”) and energy investment tax credit (“ITC”) by extending the continuity safe harbor for projects that began construction in either calendar year 2016 or 2017.1 Additionally, the Notice provides relief under the so-called 3 ½ month rule where payments were made on or after September 16, 2019, but the services or property were not expected to be provided until 2020, as long as they are actually received by October 15, 2020.
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IRS Releases 2020 Section 45 Production Tax Credit Amounts
On May 12, 2020, the US Internal Revenue Service (IRS) released a notice providing the inflation-adjustment factors and reference prices for the calculation of renewable electricity production tax credits (PTCs) under Internal Revenue Code (IRC) section 45 for 2020.
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