News & Analysis as of

Investment Tax Credits Safe Harbors U.S. Treasury

Hogan Lovells

U.S. Treasury releases New Beginning of Construction guidance on clean energy tax credits

Hogan Lovells on

With an effective date of September 2, 2025, New Beginning of Construction guidance will be prospective and not apply to projects that satisfied beginning of construction under old IRS guidance before September 2, 2025. ...more

Paul Hastings LLP

IRS and Treasury Tighten Beginning-of-Construction Rules for Wind and Solar

Paul Hastings LLP on

On Aug. 15, the U.S. Treasury Department and the Internal Revenue Service (IRS) released IRS Notice 2025-42, narrowing the rules for what qualifies as “beginning of construction” (BOC) under the One Big Beautiful Bill Act...more

Troutman Pepper Locke

IRS Issues Beginning of Construction Guidance in Response to July Executive Order

Troutman Pepper Locke on

On August 15, the Treasury Department (Treasury) and the Internal Revenue Service (IRS) issued Notice 2025-42, which provides guidance on the beginning of construction requirement as it relates to the new credit termination...more

Husch Blackwell LLP

Treasury Guidance Tightens "Beginning of Construction" Standards for Clean Energy Tax Credits, Eliminating 5% Safe Harbor for Wind...

Husch Blackwell LLP on

On August 15, 2025, the Internal Revenue Service (IRS) issued Notice 2025-42, providing long-awaited guidance on the “beginning of construction” requirements for wind and solar facilities under Sections 45Y and 48E of the...more

DarrowEverett LLP

Get to Work: New Treasury Guidance Changes Safe Harbors for Solar and Wind Tax Credits

DarrowEverett LLP on

On August 15, the Treasury Department published long-awaited guidance on applicability of “beginning of construction” safe harbors for solar and wind projects under the One Big Beautiful Bill and Executive Order 14315. While...more

Holland & Knight LLP

Eyes on Energy Tax Update: Second Quarter 2024

Holland & Knight LLP on

Eyes on Energy Tax Update is a regular publication of the Holland & Knight Renewable and Alternative Energy Tax Team that provides highlights of important developments. The Renewable and Alternative Energy Tax Team also...more

Troutman Pepper Locke

Treasury and IRS Issue Additional Domestic Content Guidance Under IRA and New Elective Safe Harbor

Troutman Pepper Locke on

On May 16, the Treasury Department (Treasury) and the Internal Revenue Service (IRS) issued Notice 2024-41, which modifies Notice 2023-38 (Prior Guidance) by expanding the list of Applicable Projects (defined below) to...more

Stoel Rives LLP

Treasury Provides New Safe Harbor for Domestic Content Bonus Credit

Stoel Rives LLP on

The U.S. Department of the Treasury (Treasury) today released Notice 2024-41, Domestic Content Bonus Credit Amounts under the Inflation Reduction Act of 2022: Expansion of Applicable Projects for Safe Harbor in Notice 2023-38...more

Troutman Pepper Locke

Treasury and IRS Release Further Guidance on Energy Community Enhancements Under IRA

Troutman Pepper Locke on

On March 22, the Treasury Department (Treasury) and the Internal Revenue Service (IRS) issued Notice 2024-30, which modifies prior guidance on the energy community enhancements. It further clarifies (a) when offshore...more

BCLP

IRS guidance on energy community PTC and ITC bonus credits provides some needed clarity

BCLP on

On April 4, 2023, the IRS and the Treasury issued Notice 2023-29 (the “Notice”) announcing an intention to propose regulations, and providing interim guidance, with respect to the requirements that taxpayers must satisfy in...more

Bracewell LLP

Treasury Department and IRS Release Guidance on the New Domestic Content Bonus Credit

Bracewell LLP on

The domestic content bonus credit (the DC Bonus), which was introduced by the Inflation Reduction Act of 2022 (the IRA), provides an enhanced tax credit for renewable energy and storage projects constructed with sufficient...more

Holland & Knight LLP

Break Out Your Calculator: IRS Releases Domestic Content Bonus Credit Guidance

Holland & Knight LLP on

Following the release of energy community bonus credit and low-income community bonus credit guidance, the U.S. Department of the Treasury and IRS recently provided taxpayers with the domestic content bonus credit guidance....more

Vinson & Elkins LLP

Treasury Quietly Changes Energy Community Guidance, Redefining Beginning of Construction Timing Rule

Vinson & Elkins LLP on

In what appears to have been an update to previously released guidance, the Department of Treasury (the “Treasury”) and Internal Revenue Service (the “IRS”) posted an unexpected update to Notice 2023-29 (the “Notice”)...more

Eversheds Sutherland (US) LLP

IRS extends continuity safe harbor for renewable energy projects

On June 29, 2021, the IRS issued Notice 2021-41, which provides a further extension of the continuity safe harbor and revises the “facts and circumstances” rules: ..For PTC and ITC-eligible projects for which...more

Husch Blackwell LLP

IRS Extends Continuity Safe Harbor For ITC And PTC Projects

Husch Blackwell LLP on

Renewable energy developers breathed a sigh of relief Tuesday when the Internal Revenue Service and Department of the Treasury issued guidance extending the safe harbor for wind and solar projects to qualify for the...more

Akin Gump Strauss Hauer & Feld LLP

Carbon Capture, Use, and Sequestration: Proposed Regulations Enable Taxpayers to Accelerate Projects

The Treasury Department and Internal Revenue Service (IRS) issued Proposed Regulations for carbon sequestration tax credits—under Section 45Q—addressing recapture risk and the availability of the credit when carbon is...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Energy Investment/Production Tax Credits - Safe Harbor: Internal Revenue Service Notice Provides Extension

The Internal Revenue Service (“IRS”) issued on May 28th Notice 2020-41 titled: Beginning of Construction for Sections 45 and 48; Extension of Continuity Safe Harbor to Address Delays Related to COVID-19 (“Notice”)...more

Pillsbury Winthrop Shaw Pittman LLP

IRS Extends Continuity Safe Harbor for Renewable Energy Projects

The IRS issues anticipated guidance providing relief to developers facing delays related to COVID-19. Delayed renewable energy projects that began construction in 2016 and 2017 will now have an additional year to qualify...more

Mintz - Energy & Sustainability Viewpoints

Treasury Extends Four-Year Continuity Safe Harbor to Five Years, Provides Safe Harbor for 3.5 Month Rule

Treasury has made good on its widely anticipated commitment to provide relief for investment tax credit (“ITC”) and production tax credit (“PTC”) projects adversely affected by COVID-19 by issuing Notice 2020-41, which (1)...more

White & Case LLP

Good News is Coming for Wind and Solar Projects: Potential Extension of the Construction Safe Harbor Period is Expected

White & Case LLP on

In a letter addressed to Senator Chuck Grassley, Chairman of the Senate Committee on Finance, Treasury indicates its intention to revise the rules governing the deadline for construction of wind and solar projects to qualify...more

McDermott Will & Schulte

IRS Releases Initial Section 45Q Carbon Sequestration Credit Guidance

Treasury and the IRS released initial guidance on the amended Section 45Q carbon oxide sequestration credit on February 19, 2020. Notice 2020-12 and Revenue Procedure 2020-12 provide guidance relating to the beginning of...more

Akin Gump Strauss Hauer & Feld LLP

Got ITCs? How to Start Construction on Your Solar Project (Pre-IRS Guidance)

Solar developers are getting antsy about what is needed to show that they started construction on their 2020 (or later) projects by the end of 2019. The answer is not clear in the absence of solar-specific guidance from...more

Akin Gump Strauss Hauer & Feld LLP

IRS Revises Historic Tax Credit Revenue Procedure

Revenue Procedure 2014-12 provides a safe harbor for historic tax credit (i.e., the Section 47 rehabilitation tax credit) partnership transactions. On January 8, the IRS issued a revised version of it that provides a...more

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