The Internal Revenue Service (IRS) yesterday released Notice 2012-39 to provide guidelines and a safe harbor to determine when construction has begun on a facility eligible to receive the renewable electricity production tax credit (PTC) or the energy investment tax credit (ITC). The Notice indicates that there are two methods that a taxpayer may use to establish that construction of a qualified facility has begun. A taxpayer may establish the beginning of construction by starting physical work of a significant nature before January 1, 2014 or by meeting the safe harbor before January 1, 2014. Although a taxpayer may satisfy both methods, a taxpayer need only satisfy one method to establish that construction of a facility has begun for the purpose of qualifying for the PTC or ITC. The terms “physical work of a significant nature”, and “safe harbor” are further defined in the Notice, as well.
Click here to read Notice 2012-39.
