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

Category Archives: Green

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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

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

IRS Revokes PLR Allocating Value of Power Purchase Agreement to Wind Facility

Posted in Deductions, Green, Tax Credits

In new PLR 201249013 the IRS revoked PLR 201214007.  The original ruling had allocated acquisition costs for a wind facility that economically related to an underlying Power Purchase Agreement (PPA) to the wind facility itself (resulting in faster tax depreciation).  In the new ruling the IRS states that “the Service has determined that Private Letter Ruling… 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

JCT Report Provides Detail on Obama Tax Proposals

Posted in Green, Legislative, REITs, Tax Exempt

  The Joint Committee on Taxation has issued a 600-page report providing significant detail on the Obama 2012 “Greenbook” tax proposals. Also attached are the excerpts relating to: energy efficient building incentives; carried interest; fractions rule simplification; and partial repeal of the REIT preferential dividends rule. The energy efficient building proposal would convert the existing… Continue Reading

Timber Forest Carbon Emission Units are Good REIT Assets

Posted in Green, Real Estate, REITs

The IRS has ruled in PLR 201123003 that a timber REIT can treat its tradable carbon emission units as an interest in real property that is a good REIT asset which creates good real estate income. The applicable forestry program granting the units imposes land use restrictions on the forest owner by requiring the forest… Continue Reading