USA: More IRS Guidance on Meeting Beginning of Construction Requirements for Geothermal Projects

IRS Revises Recent Begin Construction Guidance (National Law Review)

On May 18, 2016, the Internal Revenue Service (IRS) revised Notice 2016-31, its recent guidance on meeting the beginning of construction requirements for wind and other qualified facilities (including biomass, geothermal, landfill gas, trash, hydropower, and marine and hydrokinetic facilities).

The revisions clarify that the Continuity Safe Harbor is satisfied if a taxpayer places a facility into service by the later of (1) the calendar year that is no more than four calendar years after the calendar year during which construction of the facility began, or (2) December 31, 2016.

The revisions also include additional language that the Notice applies to any project for which a taxpayer claims the Section 45 production tax credit (PTC) or the Section 48 investment tax credit (ITC) that is placed in service after January 2, 2013.

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