Investment Tax Credit Archives

May 1, 2019

Sluggish Response to Opportunity Zone Program

Response from renewable developers has been slow to the Tax Cuts and Job Act of 2017’s Opportunity Zone program, with only 11 Qualified Opportunity Funds (QOFs) focused on renewable energy since the program began. The program provides capital gains tax benefits for renewable investments in up to 8,700 federally designated areas. The program allows investors to defer taxes and gains put into QOFs, the vehicles used to invest in the zones, until December 2026. Investors who hold their investments for five to seven years can increase their basis on the investment by 10 to 15 percent, cutting taxes by an equal amount…. Read more

Jul 25, 2018

“Beginning of Construction” for Investment Tax Credit for Solar Energy Projects Defined by the IRS

Solar Investment Tax Credit & Solar Energy Projects

On June 22, 2018, the IRS released guidance to assist developers and owners of solar energy projects in determining the “beginning of construction” for solar energy projects for purposes of the Investment Tax Credit (ITC) under Section 48 of the Internal Revenue Code. In extending the ITC in 2015, Congress changed the previous “placed-in-service” standard for qualification for the credit to a “beginning of construction” standard for projects completed by the end of 2023. Projects beginning construction in 2019 will receive the current 30% ITC, while projects beginning construction in 2020 and 2021 will receive 26% and 22%, respectively. After… Read more

Oct 29, 2012

New Analysis Makes Forceful Argument For Favorable and Effective Tax Incentive For Solar Projects

Affordable energy is critical to industry and is a key lever of American progress. As the U.S. continues to work toward economic recovery, the most effective energy tax policies will encourage private investment in beneficial technologies while ensuring that the costs of those incentives are not inordinately borne by others. Newly published analysis by the U.S. Partnership for Renewable Energy Finance (US PREF) contends that the Investment Tax Credit for solar photovoltaic projects has been a success in reaching this objective. In Paid In Full: An Analysis of the Return to the Federal Taxpayer for Internal Revenue Code Section 48… Read more