IRS Provides Guidance on Energy-Related Tax Issues
The IRS recently released Notice 2012-23 to provide guidance on tax-related issues involving cash payments for specified energy property in lieu of tax credits under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 (ARRTA). The purpose of Section 1603 is to reimburse eligible applicants for a portion of the expense of such property.
Section 1603 of ARRTA directs the Secretary of the Treasury to provide Section 1603 cash payments to qualified applicants that place in service specified energy property. Treasury will make Section 1603 payments to eligible applicants in an amount equal to 10 percent or 30 percent of the basis of the specified property. Eligible properties include property used in a trade or business or those held for the production of income.
Click here to read IRS Notice 2012-23.
IRS Clarifies Certain Provisions Related to PTC and ITC
The Internal Revenue Service (IRS) recently released Notice 2014-46, further clarifying Notices 2013-29 and 2013-60, regarding (i) how to satisfy the Physical Work Test and (ii) the effect of various types of transfers with respect to a facility after construction has begun.