Category: Tax

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Wyoming: Partying Like It’s 1899

Wyoming has one of the nation’s best wind resources.  But if a contingent of state senators and representatives there have their way, electric utilities located in the state will be slapped on the wrist for using it (or other renewables, for that matter).  Senate File 71, which has been introduced in the Wyoming State Senate and … Continue Reading

IRS Opens Door for Community Solar Investors to Qualify for Federal Tax Credits

The Internal Revenue Service issued a private letter ruling this week to an individual owner of solar panels installed in an off-site net-metered community solar garden.  In the Ruling, the Service confirmed the individual’s eligibility to claim the residential income tax credit for 30 percent of qualified solar electric property expenditures pursuant to Section 25D … Continue Reading

Tentative Ruling Issued in California Cap and Trade Auction Lawsuit

A tentative ruling was issued yesterday in the related cases California Chamber of Commerce v. California Air Resources Board (ARB)  and  Morning Star Packing Co. v. ARB, pending before the Sacramento County Superior Court.  The cases challenge the legality of ARB’s cap and trade auctions under two theories:  (1) the cap and trade auctions exceed ARB’s authority … Continue Reading

IRS Likely to Supplement “Beginning Construction” Guidance

As most of you are aware, Congress in the "American Taxpayer Relief Act of 2012" eliminated the "placed in service" deadline for purposes of the renewable energy tax credits.  In its place, Congress required for purposes of the production tax credit (section 45) and the elective investment tax credit (section 48), that taxpayers "begin construction" … Continue Reading

IRS Issues Clarification Regarding “Binding Written Contract” in its “Start of Construction” Guidance for PTC or ITC Energy Credits

As we originally noted, the IRS guidance issued April 15 regarding the "start of construction" requirement for energy projects to qualify for PTC or ITC contained a "big surprise" regarding its definition of a binding contract. Unlike previous incentive programs, the guidance provided that contracts that limit damages to a specified amount, such as by … Continue Reading

Phase II – 48C credits

As you may have heard, the IRS and DOE have announced a second allocation of "Advanced Energy Project Tax Credits" – also known as 48C credits.  The 48C credit was enacted as part of the stimulus bill (ARRA) in 2009 and the first allocation was made in 2010.  Phase II is being held because a … Continue Reading

Stoel Rives Opens Office in Washington, D.C.

We are pleased to announce that we have opened a satellite office in Washington, D.C. Our new address, effective immediately: Stoel Rives LLP 1020 19th Street NW, Suite 375 Washington, DC 20036 Phone: (202) 398-1795 / Fax: (202) 621-6394 The new office is headed by firm partner Greg Jenner, a former Deputy Assistant Secretary of … Continue Reading

Fiscal Cliff Bill Includes PTC Extension and Other Energy-Related Provisions

Congress yesterday passed the American Taxpayer Relief Act of 2012 (the Act), which averted the so-called “fiscal cliff.” The President is expected to sign the Act shortly. The Act includes a number of energy-related tax provisions, including a one-year extension and modification of the production tax credit under Section 45 of the Internal Revenue Code … Continue Reading

Congress Passes Extension and Modification of Production Tax Credit

News reports have already alerted people to the fact that Congress has extended the Production Tax Credit ("PTC") for wind as part of its agreement to avoid the fiscal cliff. The bill – named the American Tax Relief Act of 2012 – extended the sunset date for wind through December 31, 2013. This extension gives … Continue Reading

Economists Weigh in on the PTC Extension

Against the backdrop of election year politics and consideration of extension or elimination of the Production Tax Credits (PTCs), the Congressional Research Service (CRS) issued a report last week entitled, “U.S. Renewable Electricity: How Does the Production Tax Credit (PTC) Impact Wind Markets?” This report examines the possibility of an extension of the PTC, and … Continue Reading

Only the Strong Survive: the post PTC Wind Market

My colleague Ed Einowski didn’t mince words in a recent article published by The Sindal Report. If the federal production tax credit (PTC) is allowed to expire at the end of this year, there will be a dramatic drop-off in wind installation starting in 2013. And these diminished opportunities will add up to significant changes … Continue Reading

Further update on Expiring Provisions

As I mentioned in my post yesterday, sometimes a chairman’s mark will change just before the committee marks up legislation.  Chairman Baucus’s did.  Here is a description of the now-included PTC/ITC proposal: Description of Proposal  The proposal extends and modifies the expiration dates for the renewable electricity production credit and the 30-percent investment credit in … Continue Reading

Follow up – Baucus and Hatch strike deal on expiring provisons

Earlier today, I reported that Senators Baucus and Hatch had agreed on a proposal to extend a package of expiring provisions.  Details of that package have now been released here: https://www.jct.gov/publications.html?func=startdown&id=4480 Unfortunately, it appears that extension of the PTC was not included.  This does not preclude the Senate Finance Committee from adding it during its … Continue Reading

Possible Agreement on Extension of Tax Provisions, including PTC

Senators Max Baucus and Orrin Hatch, chairman and ranking member respectively, of the US Senate Finance Committee, have just announced that they have reached agreement on legislation to extend certain expiring tax provisions.  The bill will be marked up by the Finance Committee on August 2. The details of the proposal have not been announced.  … Continue Reading

Stoel Rives Offering 50% Registration Discount at Project Finance: The Tutorial

Stoel Rives partner Ed Einowski will serve as a faculty member and speaker at Infocast’s Project Finance: The Tutorial, taking place next month in New York City.  This program, now in its 25th year, is truly a critical financial tool, as it provides insights into obtaining financing in today’s market environment.  This is why Stoel … Continue Reading

President Proposes Permanent PTC Extension

On Wednesday, February 22, the White House and the Department of Treasury issued a report entitled “The President’s Framework for Business Tax Reform.”  Among other proposals for reforming the way U.S. businesses are taxed, the report calls for a permanent extension of the Production Tax Credit (“PTC”) for renewable energy projects.  In addition, the President’s … Continue Reading

Section 1603 Cash Grants for Renewable Energy Projects TeleBriefing

With the end of 2011 drawing near, many renewable energy developers are seeking to qualify their projects for the Section 1603 cash grant.  Developers continue to try to understand the complexities surrounding the grant requirements, especially the determination of when projects are considered to have met the “beginning construction” requirement. On August 24, I’ll moderate a Law Seminars … Continue Reading

LexisNexis Selects Renewable + Law Blog to its Top 50 Environmental Law Blogs List

Having first reported to our readers in February that LexisNexis had nominated the Stoel Rives Renewable + Law Blog for its Top 50 Environmental Law & Climate Change Blogs for 2011 award, we are pleased to announce we made the list of winners! In publishing its Top 50 list, LexisNexis declared that our Renewable + … Continue Reading

Energy-Related Tax Proposals in President’s 2012 Budget

The Obama Administration last week released its proposed budget for 2012, which includes a number of tax proposals that could have a direct impact on the financing of renewable energy projects. Some of the more significant proposals include extension of the grant in lieu of tax credits, an additional allotment of qualified advanced energy manufacturing … Continue Reading

Projects & Money 2011

As we approach the beginning of a new year, financing options for energy projects (both conventional and renewable) under the current economic conditions continue to be a challenge and a focal point for the energy industry.  In order to gear up for financing opportunities in 2011,  I, along with my colleagues Marcus Wood, Graham Noyes and Adam … Continue Reading

Energy Tax Law Alert: Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

Congress yesterday passed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the Act), which extends several expiring renewable energy and fuel tax incentives and includes some new incentives that could provide significant benefits to renewable energy projects. The President signed the Act earlier today. Among the more significant provisions in the … Continue Reading

House Passes Senate tax bill

As many of you have heard, this morning the House of Representatives passed the Senate compromise tax bill by a vote of 277-148.  The bill now goes to the President for his signature. For the renewables industry, this is extremely good news.  The bill extends the deadline for beginning construction for the section 1603 grant … Continue Reading

Tax bill update

As some of you may have heard, the Senate today passed its version of the tax compromise by a vote of 81-19.  The bill includes an extension of the deadline in section 1603 for beginning construction through 2011.  The size of the majority is a strong signal to the House that the Senate may not … Continue Reading
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