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The United States Internal Revenue Service is a bureau of the United States Department of the Treasury. The IRS is charged with collecting revenue and enforcing the Internal Revenue Code.  
Husch Blackwell LLP

Senate Version of One Big Beautiful Bill Act Clarifies Foreign Entity Restrictions on Renewable Energy Tax Credits

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The Senate Finance Committee recently released its own draft of the “One Big Beautiful Bill Act” (the Bill) previously passed by the House as H.R. 1. Both the House and Senate versions of the Bill impose restrictions on...more

Orrick, Herrington & Sutcliffe LLP

Section 48 Energy Investment Tax Credit: Final Regulations Released

The U.S. Department of the Treasury (Treasury) and Internal Revenue Service (IRS) have released final regulations for the energy investment tax credit (ITC) under Section 48 of the Internal Revenue Code, which was...more

Foster Garvey PC

Unlocking Clean Energy Investments: New Elective Payment Credits for State and Local Governments

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State and local governments undertaking clean energy projects may be eligible for cash payments equal to the renewable electricity production tax credit or energy investment tax credit that would have been available to a...more

King & Spalding

IRS and Treasury Issue Section 48 Investment Tax Credit Proposed Regulations

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Section 48 of the Internal Revenue Code of 1986, as amended (the “Code”) provides for an investment tax credit (“ITC”) for certain energy property. The Inflation Reduction Act of 2022 (the “IRA”) amended Section 48 in several...more

Vinson & Elkins LLP

Treasury Releases a Swath of Guidance on the Investment Tax Credit

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On November 17, 2023, the Department of the Treasury (“Treasury”) and the Internal Revenue Service (the “Service”) issued proposed regulations [REG-132569-17] regarding the definition of “energy property” and related rules...more

Vinson & Elkins LLP

3 Developments That May Usher In A Nuclear Energy Revival

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Nuclear energy is experiencing a resurgence. As the world grapples with how best to address climate change, nuclear has found a seat at the table as a viable, zero-carbon energy source. While the appetite in the U.S. for...more

Pillsbury Winthrop Shaw Pittman LLP

Treasury Department Announces Additional Guidance and Timetable to Allocate $4 Billion in Qualifying Advanced Energy Project...

The application cycle for the first round of credits will soon open. Treasury’s additional guidance clarifies what types of facilities may qualify for credits, the submission process and the selection criteria for evaluating...more

Sheppard Mullin Richter & Hampton LLP

Inflation Reduction Act: Prevailing Wage and Apprenticeship Requirement FAQs and Key Takeaways from the Initial Guidance from the...

As previously discussed in our blog Inflation Reduction Act: Wage and Apprenticeship Requirements, the Inflation Reduction Act (the “IRA”) restructured the tax credit system associated with qualified clean energy projects...more

Allen Matkins

Renewable Energy Update - July 2021

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IRS extends safe harbor provisions for renewable energy projects impacted by COVID-19 - Renewables Now – June 30 - The Internal Revenue Service (IRS) has granted extra time to renewable energy projects impacted by the...more

Morrison & Foerster LLP

Window Widens For Completing Construction On Renewable Energy Projects

Good news came for renewable energy developers on June 29, 2021, when the IRS issued Notice 2021-41. The notice gives developers more time to finish projects and makes it easier to prove that they began construction on a...more

Latham & Watkins LLP

Treasury Finalizes Carbon Capture Tax Credit Regulations

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The US Treasury Department and the IRS provided practical administrative rules for the carbon capture and sequestration tax credit. Key Points: ..The IRS finalized the third set of rules in a series of regulatory guidance...more

Orrick, Herrington & Sutcliffe LLP

Department of Energy and USEA Release Comprehensive Carbon Capture Incentives Report Co-authored by Orrick

On September 21, the United States Energy Association (“USEA”), on behalf of the Department of Energy Office of Fossil Energy, released a comprehensive report on the current state of carbon capture, utilization, and...more

Opportune LLP

What Does IRS, Treasury Carbon Capture Tax Credit Guidance Mean For Future Energy Production?

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The Treasury Department and the IRS recently provided practical administrative guidance for carbon capture and sequestration tax credits, but what are the broader implications for future energy production?...more

Eversheds Sutherland (US) LLP

Ready, Set, Sequester? An updated guide to the Section 45Q Carbon Capture and Sequestration Credit Guidance

Section 45Q, as amended by the Bipartisan Budget Act of 2018 (BBA), provides a substantial tax credit for the capture and sequestration of carbon dioxide and other carbon oxides. Taxpayers have been awaiting guidance from the...more

Latham & Watkins LLP

Future of Carbon Capture Looks Bright After Treasury Proposes Long-Awaited Regulations

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The Treasury Department and the IRS provided practical administrative rules for the carbon capture and sequestration tax credit. Key Points: ..These rules are the third in a series of regulatory guidance issued by the IRS...more

Latham & Watkins LLP

IRS Provides COVID-19 Relief for Renewable Energy Projects

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Notice 2020-41 gives renewable energy developers more time to complete projects and eases technical requirements of the 3 ½ month rule. Key Points: ..Developers who started construction in 2016 or 2017 now have five years...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

Morgan Lewis

IRS Releases Proposed Regulations for Carbon Sequestration Tax Credit

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The proposed regulations, released on May 28 and on which taxpayers may currently rely pending finalization, build on prior guidance for carbon capture and sequestration tax credits under Section 45Q of the Internal Revenue...more

Mayer Brown

IRS Provides Start-of-Construction Relief for Renewables in Light of COVID-19

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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...more

Mayer Brown

COVID-19: CARES Act Fails to Address Renewable Energy Industry’s Concerns But Path Forward with the IRS Remains

Mayer Brown on

Background - As the COVID-19 pandemic continues to disrupt project development timelines generally, solar and wind projects that rely on federal income tax credits to obtain financing are particularly sensitive to...more

McGuireWoods LLP

IRS Provides Carbon Capture Tax Credit Guidance and Safe Harbor

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On Feb. 20, 2020, the IRS issued Notice 2020-12 and Revenue Procedure 2020-12 regarding carbon capture tax credits (IRC Section 45Q). Notice 2020-12 (the begin construction notice) provides guidance to determine when...more

Akin Gump Strauss Hauer & Feld LLP

Carbon Capture Tax Credit Gets a Boost From IRS Guidance – A Practical Guide for Investors

The Internal Revenue Service (IRS) has issued the first round of guidance regarding the tax credit for carbon oxide sequestration under Internal Revenue Code Section 45Q. This guidance is divided between two documents:...more

Holland & Knight LLP

IRS Sheds New Light on Solar Tax Credits, Leaves Energy Storage in the Dark

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The Internal Revenue Service (IRS) issued recent guidance regarding construction of commercial solar energy properties and other qualified energy properties for purposes of claiming the Investment Tax Credit (ITC), the key...more

Latham & Watkins LLP

IRS Issues Additional Guidance on “Begun Construction” Requirement for Wind Energy Credits

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Latest guidance extends “continuity safe harbor” to four years and includes other taxpayer-friendly modifications and clarifications to existing guidance. On May 5, 2016, the Internal Revenue Service (IRS) issued...more

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