16 Apr '13, 2pm

IRS Defines Start of Construction for the Production Tax Credit

The IRS adopted roughly the same definition for start of construction as under the Treasury cash grant program. Wind, geothermal, biomass, landfill gas, incremental hydroelectric and ocean energy projects that are under construction by December 2013 will qualify for 10 years of production tax credits on the electricity output or an investment tax credit upon project completion for 30 percent of the project cost. There is no deadline to complete projects that start construction this year. The IRS departed from the Treasury cash grant rules in one significant respect. There are two ways to show that a project is under construction in time. One is by showing that “physical work of a significant nature” commenced at the site or at a factory that is making equipment for the project. Work at the factory counts only if done after the project has placed a binding equipment order w...

Full article: http://www.renewableenergyworld.com/rea/news/article/2013...

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