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Posts tagged “IRS”

By Elias Hinckley on Apr 4, 2013 with no responses

The IRS and Renewable Energy Finance: The Waiting Game

The IRS issued an important piece of guidance related to clean energy finance this week. It is the annual inflation adjustment for the Production Tax Credit (PTC) and it increased the credit from 2.2 to 2.3 cents per kWh for full qualifying energy property like wind and geothermal, while the partial credit for sources like open-loop biomass and incremental hydro remained at 1.1 cents per kWh (also adjusted were the inflation factors for Indian and refined coal).

PTC Rules

More important is what is still missing – despite widespread expectation for a first quarter release, the long awaited rules on how to determine the start of construction for purposes of determining what projects will be PTC eligible at the end of 2013 still have not been issued.

When the PTC was extended as part of the fiscal cliff deal during the holidays there was an important change in the method for determining whether a project would qualify for the credit. Historically, the qualification of property was based on the date the property was placed in service (and it’s worth noting that this rule is actually somewhat vague and the application sometimes very nuanced). Now, qualification is based on when construction for the facility begins. As long as construction starts before year-end, property is eligible for the credit.


By Robert Rapier on Sep 15, 2010 with 91 responses

ExxonMobil Says No to Subsidies

Company officials say they would be happy to give up the Volumetric Ethanol Excise Tax Credit provided it is eliminated across the entire industry.