On July 1, 2021, the US Internal Revenue Service released Revenue Ruling 2021-13 (the “Ruling”), which provides additional guidance on the definition of “carbon capture equipment” for purposes of the carbon capture tax credit under Section 45Q of the Internal Revenue Code of 1986, as amended. The Ruling also clarifies that a taxpayer need not own every piece of equipment within a single process train in order to claim the tax credit so long as the taxpayer owns at least one component. In addition, the Ruling provides helpful guidance on determining the placed-in-service date of the single process train for purposes of Section 45Q.
Continue Reading IRS Ruling Provides Guidance on Carbon Capture Equipment and Section 45Q Credit
IRS Extends Start-of-Construction Relief for Renewables in Light of Continuing Effects of COVID-19
On June 29, 2021, the US Internal Revenue Service (the “IRS”) released Notice 2021-41, extending and enhancing previous relief given by the IRS pursuant to Notice 2020-41 on the start-of-construction rules for the production tax credit and energy investment tax credit. The new notice extends the continuity safe harbor for projects that began construction in calendar years 2016 through 2020 and relaxes the continuity requirement for projects that do not satisfy the continuity safe harbor.
Continue Reading IRS Extends Start-of-Construction Relief for Renewables in Light of Continuing Effects of COVID-19
Electric Vehicle and Charging Station Tax Credits: Assessing Proposed Changes
Section 30D of the US Internal Revenue Code (“IRC”) provides business and individual taxpayers that purchase new qualified plug-in electric drive motor vehicles (“EVs”), including passenger vehicles and light trucks, with a nonrefundable tax credit. Section 30C of the IRC provides a nonrefundable investment tax credit equal to 30 percent of the cost of alternative fuel vehicle refueling property, which includes EV charging stations and hydrogen refueling stations. There are currently three primary proposals under discussion in Washington that could materially change these federal income tax credits. This Legal Update compares key aspects of these proposals. The three proposals are the Biden Administration FY 2022 Budget, the GREEN Act and the Clean Energy for America Act.
Continue Reading Electric Vehicle and Charging Station Tax Credits: Assessing Proposed Changes
North Carolina, a Little Late to East Coast Offshore Wind Race, Goes 8 GW-by-2040 Large
More still on offshore wind from my partners Paul Forrester and Eric Pogue.
US Department of Interior to Consider Offshore Wind in Gulf of Mexico
More on US offshore wind from my partners Paul Forrester and Eric Pogue.
Governors of Nine East Coast States Send Offshore Wind Letter to Biden Administration
Read about the letter in this piece by my partners Paul Forrester and Eric Pogue.
G7 Commits to Multi-Year Effort to Support Net-Zero Global Economy and to Move to Mandatory Climate Risk Reporting
Read the latest from G7 on climate change in this Legal Update authored by my Mayer Brown colleagues, Paul Forrester and Andrew Olmem.
Biden Administration Budget: Energy Tax Proposals
Read about the Energy Tax Proposals in the Biden Administration’s 2022 Budget in this Legal Update: Energy Tax Implications of the Administration’s FY2022 Budget Tax Proposals | Perspectives & Events | Mayer Brown.
IRS Releases 2021 Section 45 Production Tax Credit Amounts
On May 24, 2021, the US Internal Revenue Service (IRS) released Notice 2021-32, which provides 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 calendar year 2021.
The notice provides that the PTC for electricity produced from wind, as well
More Polar Vortex 2021 Fallout
My partner Paul Forrester wrote a Brief entitled “More Polar Vortex 2021 Fallout: “Austin, We Have a Problem” – Aggregate ERCOT Payment Shortfall Around $3B, But ERCOT Can Only Bill “Default Uplift” at $30M Per Year”. You can read it here.