IRS Extends Safe Harbor for Renewable Energy Project Tax Credits

摘要

The Treasury Department and IRS extended a safe harbor allowing taxpayers who are developing renewable energy projects to claim the production and investment tax credits.In a notice issued Tuesday (Notice 2021-41), Treasury and the IRS said they were extending the period under which a project can qualify for a safe harbor that meets the tax credits’continuity requirement. A taxpayer must make continuous progress towards completion of the facility once construction has begun, under this requirement.1. Qualified facilities that began construction in 2016 through 2019 can qualify for the safe harbor if the facility is placed in service by the end of the sixth year after construction began.Projects that began in 2020 will have five years.2. The move is intended to recognize the fact that the Covid-19 pandemic has caused delays in developing facilities eligible for the tax credits, Treasury and the IRS said. They havepreviously extended safe harbors for renewable energy projects in several other ways.