More on US offshore wind from my partners Paul Forrester and Eric Pogue.
Read about the letter in this piece by my partners Paul Forrester and Eric Pogue.
Read the latest from G7 on climate change in this Legal Update authored by my Mayer Brown colleagues, Paul Forrester and Andrew Olmem.
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.
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 as closed-loop biomass and geothermal energy, remained unchanged from 2020 at 2.5 cents per kWh for 2021. The notice also includes the PTC amounts for electricity produced from other qualified energy resources. Specifically, the PTC for electricity produced from open-loop biomass, landfill gas, trash, qualified hydropower, and marine and hydrokinetic resources also remained unchanged at 1.3 cents per kWh for 2021. However, the PTC for refined coal increased from $7.301 per ton for 2020 to $7.384 for 2021.
IRC section 45 provides the PTC for any taxable year in the amount of 1.5 cents per kWh of electricity produced by a taxpayer from a qualified facility using wind or closed-loop biomass and sold to an unrelated person during the 10-year period beginning on the date on which the facility is originally placed in service. The credit amount is reduced by one-half for electricity produced from a qualified facility using open-loop biomass, landfill gas, trash, qualified hydropower, and marine and hydrokinetic resources.
IRC section 45 also provides the PTC in the amount of $4.375 per ton of qualified refined coal produced by a taxpayer from a qualified facility and sold to an unrelated person during the 10-year period beginning on the date in which the facility is originally placed in service.
IRC section 45 provides that the 1.5 cent amount and $4.375 amount are to be adjusted annually for inflation.
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.
In an April 12, 2021 letter to Treasury Secretary Yellen, the Solar Energy Industries Association (SEIA) has asked for an extension of the so-called “continuity safe harbor” under the beginning of construction rules under IRS Notice 2018-59. Continue Reading SEIA Asks for Extension to Continuity Safe Harbor
There have been a number of recent legislative proposals that could drastically impact the US energy industry, including renewables. In this Legal Update, my Mayer Brown colleagues and I describe some of the highlights.
There are several state legislative proposals in Texas that could have adverse impacts on the development and operation of renewable energy projects in Texas. Continue Reading Anti-Renewables Legislative Proposals in Texas
On March 31, the Biden Administration released its much-anticipated American Jobs Plan (the “AJP”), which outlines $2.3 trillion of proposed spending on not only traditional infrastructure programs, but also climate change, housing, drinking water, workforce development, manufacturing, telecommunications, and elderly care measures. Read more about the AJP in this Mayer Brown Legal Update.