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Tax Law Roundup current law developments in U.S. taxation

Category Archives: Energy

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Favorable IRS Guidance on Pre-2014 Renewable Energy Projects

Posted in Energy, Green, Tax Credits

The IRS and Treasury announced taxpayer-favorable guidance regarding the grandfathering of pre-2014 projects for the purposes of the renewable electricity production tax credit (PTC) or the energy investment tax credit (ITC).  As noted in our 2013 blog, a “qualified facility” is eligible to receive either a renewable electricity production tax credit or energy investment tax… Continue Reading

Senate Finance Reveals Energy Tax Reform

Posted in Energy, General, Legislative

Today the Senate Finance Committee announced their proposal to streamline the energy tax rules in their latest installment of the Sen. Baucus tax reform proposals.  The staff discussion draft focuses on streamlining energy tax incentives so they are more predictable and technology-neutral.  Under current law, there are 42 different energy tax incentives, including more than… Continue Reading

Renewable Energy Production Tax Credit – IRS Guidance On When Construction Begins

Posted in Energy, Green, Procedure

Under 2012 legislation, a “qualified facility” is eligible to receive either a renewable electricity production tax credit or energy investment tax credit, if construction of such facility begins before January 1, 2014.  In new Notice 2013-29 the IRS provides guidelines and a safe harbor to determine when construction has begun on such a facility.  For… Continue Reading

Proposed Legislation to Extend and Expand Green Incentives for Commercial and Residential Buildings

Posted in Energy, Green, Legislative, REITs

Four Senators introduced the Commercial Building Modernization Act (S. 3591) (the “Bill”), extending and expanding the federal Section 179D energy efficiency tax deduction.  The deduction applies to qualifying energy efficient construction or rehabilitation of commercial and residential buildings.  Most notably, the Bill would both significantly expand the deduction and also extend it through the end… Continue Reading

IRS Allows Five Year Depreciation for Wind-Facility Power Purchase Agreement

Posted in Deductions, Energy, Green

NOTE THE IRS REVOKED THIS RULING IN PLR 201249013. In PLR 201214007, the IRS treated facility-specific power purchase agreements (PPAs) as part of their related energy production facilities, and that such PPAs are therefore eligible for favorable five-year depreciation.  In the PLR, the taxpayer acquired both a wind facility and the related PPA and the… Continue Reading

Obama Proposes Incentives for Energy Efficient Buildings – Paid for by Oil & Gas Industry

Posted in Energy, REITs, Tax Credits

Obama announced a new “Better Buildings Initiative” to make commercial buildings 20 percent more energy efficient over the next decade. In a February 3 speech, President Obama proposed significantly increasing the existing §179D incentives for energy efficient buildings. The President is calling on Congress to redesign the current tax deduction for commercial building upgrades, transforming… Continue Reading