News & Alerts
January 4, 2021 SAFE HARBOR FOR PRODUCTION AND INVESTMENT TAX CREDITS EXTENDED FOR RENEWABLE ENERGY PROJECTSpdf
The U.S. Department of the Treasury and the Internal Revenue Service have extended the safe harbor window to claim production or investment tax credits under §§ 45 and 48 of the Internal Revenue Code for renewable energy projects. IRS Notice 2021-05 provides guidance on the extension, which applies to a qualified facility or energy property construction project that is an Offshore Project or Federal Land Project, as defined under section 4.02 of the Notice. These projects will satisfy the Continuity Safe Harbor (as defined in section 2.04(3) of the Notice) if a taxpayer places the qualified facility or energy property for the project into service within 10 calendar years after the calendar year during which construction of the project began. The Notice can be read in its entirety on the attached PDF document.