During April 2013, the Internal Revenue Service increased the Production Tax Credit (PTC) from 2.2-cents/kilowatt-hour (kWh) to 2.3-cents/kWh to adjust for inflation. PTC is a financial incentive that supports the development of wind-powered generation. Also this month, the IRS released an advanced copy of Notice 2013-29, which describes the way projects under construction can now qualify for the credit.At the beginning of the year, Congress extended the PTC through 2013 and expanded the credit to include projects that were able to commence construction in 2013, although the legislation did not provide guidance on what level of construction would need to be achieved to qualify.
The IRS notice describes two ways facilities can qualify:
1) if “physical work of a significant nature” has begun that includes a “contiguous program of construction,” or
2) a Safe Harbor provision can be met that includes incurring costs of 5% of more of the total cost of the facility in addition to an effort to continue construction.
Congress continues its examination of the Production Tax Credit, most recently with a House Science, Space, and Technology Committee hearing exploring a Government Accountability Office study that examined several federal programs supporting wind energy. Members and witnesses debated the benefits to federal support for wind energy, as well as the support for wind energy compared to current incentives for oil and natural gas. (ISO Newswire, 5/1/2013)
To learn more about the PTC, read the related articles.
Federal Update: Uncertainty surrounds tax credit for wind energy in New England
No comments:
Post a Comment