It’s official! On “tax day” (April 15, 2013), the IRS released Notice 2013-29 (revised on April 25) providing guidance regarding whether a “qualified facility” will be eligible for the renewable electricity production tax credit (PTC) under section 45 of the Tax Code or the energy investment tax credit (ITC) under section 48 in lieu of the ITC. This guidance has been highly anticipated by the wind industry as well as other applicable alternative energy industries ever since these tax credits were extended (and eligibility criteria were modified) at the end of 2012.
I released a detailed Client Alert discussing Notice 2013-29. Click here to access the Client Alert.
If you are familiar with the 1603 cash grant, you will recognize that Notice 2013-29 borrows liberally from the guidance issued by the U.S. Department of Treasury for purposes of that program.
Here is a brief summary:
Notice 2013-29 contains more information than I’ve outlined above, including some helpful examples to better understand the rules. Take a look at either my Client Alert for additional information or the Notice itself. I think you will agree with me that the Notice provides helpful guidance that will allow developers on the sidelines since the beginning of the year to more forward on otherwise eligible projects.