On April 4, 2023, the Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) released a notice of intent to issue proposed regulations on qualifying for the energy community bonus credit under Sections 45, 45Y, 48 and 48E (Notice). Pursuant to the Inflation Reduction Act that was passed last August, eligible taxpayers can receive a bonus of up to 10% in excess of the investment tax credit under Sections 48 and 48E and an increase of 10% for the production tax credit under Sections 45 and 45Y for clean energy projects and facilities that are located in certain energy communities.
Continue Reading US Treasury to Propose Regulations on Energy Community Bonus Adders
Tax Credit Eligibility of Reflective Roofs to Bolster Solar Production
First Published in Tax Notes on July 18, 2016
Below is a link to my Tax Notes article that discusses three IRS letter rulings involving the investment tax credit eligibility of reflective roofs that bolster the electricity produced by a related solar project. Further, in light of the IRS letter rulings, the article makes suggestions
Start of Construction Should Benefit Clean Energy
First Published by Law 360 on May 27, 2016
Below is a link to our article discussing IRS Notice 2016-31, which the IRS published in May. Notice 2016-31 provides helpful rules for wind projects applying the “start of construction” deadline enacted by Congress in December with respect the extension of tax credits for wind
Dominion Takes on ITC Rules
First published in the April 2016 edition of Solar Industry Magazine
Testimony on Feb. 23 to Virginia’s State Corporate Commission from an advisor to the commission described the strategy of Dominion’s Virginia Electric and Power Co. (VEPC) to escape the grasp of the Internal Revenue Code’s normalization rules that prohibit utility-owned and -operated solar projects
IRS Private Letter Rulings Conflicted On Solar Tax Credits
First Published in December 2014 in Solar Industry Magazine
On Oct. 31, the U.S. Internal Revenue Service (IRS) released Private Letter Ruling (PLR) 201444025, which was addressed to a manufacturer of solar systems that are mounted on real estate. The nature of the real estate, along with many other interesting facts, was redacted from the
All Drywall Systems Aren’t Created Equal Under MACRS
First published in Bloomberg BNA’s Daily Tax Report on May 15, 2014
David Burton examines a recent private letter ruling where the Internal Revenue Service held that ‘‘zip’’ drywall partition systems are depreciated faster than conventional drywall partitions. He compares the Service’s ruling in the PLR with consistent federal appeals court decisions that preceded it—but
IRS Blesses TRAC Lease Securitization
This article was first published by Bloomberg BNA Daily Tax Report on February 24, 2014
In Private Letter Ruling 201404007, released Jan. 24, the Internal Revenue Service ruled favorably on a securitization structure to raise nonrecourse financing secured by cars subject to leases with a terminal rental adjustment clause (TRAC) provided for in Section 7701(h).