Dear Renewable + Law Blog readers. Chances are you’ve noticed our new – and improved – appearance. We first launched our blog in 2008, pledging to keep you updated on major policy and legal developments impacting the renewable energy industry. That commitment hasn’t changed, but technology certainly has. It was still a desktop- and RSS-dominated
Blog: FERC Chair Jon Wellinghoff to Join Stoel Rives
Our firm today announced that Jon Wellinghoff, Chair of the Federal Regulatory Commission (FERC), will join Stoel Rives LLP upon completion of his service at FERC. As many of our readers will recall, Jon submitted his resignation to the President on May 28, 2013. No date has been announced for his departure from FERC.
For
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"
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
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
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
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 the potential impacts such an extension (either long- or short-term) would have on the U.S. wind market. Not surprisingly, the conclusions are mixed and layered with uncertainty.
The report trumpets that 2012 will be a record year for the wind industry. Due in large part due to the pending expiration of the PTC, the U.S. wind sector deployed 10-12 GW of wind power this year—an unprecedented amount. However, all indications are that the expiration of the PTC will cause a severe market downturn in 2013 and beyond. No wonder the wind industry has been pushing Congress so hard for an extension. But does an extension make good economic sense?
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
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
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.