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Leveraging PTC and ITC for Renewable Energy and the New Tax Extenders Bill

Securing Tax Credits for Renewable Energy Projects, IRS "Beginning of Construction" guidance, Avoiding Mishaps That Jeopardize Tax Incentives

Note: CPE credit is not offered on this program

Recording of a 90-minute premium CLE webinar with Q&A

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Conducted on Thursday, March 26, 2020

Recorded event now available

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This CLE course will provide an in-depth analysis of securing the production tax credit (PTC) and investment tax credit (ITC) and other tax incentives for renewable energy projects. The panel will discuss relevant structures for renewable projects, various tax issues and the key provisions of the recently passed Consolidated Appropriations Act of 2020 that extends or renews tax credits for renewables. The presenters will provide a critical analysis of the IRS "begin construction" rules and practical techniques to avoid mishaps that may jeopardize PTC/ITC and other tax incentives.

Description

On Dec. 20, 2019, the Further Consolidated Appropriations Act of 2020 was signed into law extending or renewing certain expired or expiring tax credits and other tax incentives. Energy counsel must grasp a complete understanding of key provisions of the new legislation and rules for claiming the ITC and PTC to secure financing for renewable energy facilities and development.

Both the ITC and PTC for renewable energy are critical components of successful project financing, significantly impacting ownership structures and available tax planning techniques. The PTC provides a credit for each kilowatt-hour of energy production for qualified renewable energy facilities. The new legislation includes a one-year extension of the PTC under Section 45. It also includes a limited extension of other energy tax incentives that set to expire and a retroactive extension for some credits that had already expired in 2018.

The ITC allows taxpayers to claim a credit for the cost of investment in qualified energy property. The new legislation extends the ITC in lieu of the PTC for wind facilities where construction begins in 2020, making them eligible for 60% of the ITC.

It is critical for developers and investors (and their counsel) to understand the relevant structures of such renewable projects, the various tax issues and the nuances of the new legislation, rules, and guidance regarding these credits to ensure that the credits will be available concerning their renewable energy projects.

Listen as our authoritative panel of energy counsel and tax professionals examines the benefits of the tax credits and discusses the recent legislation, critical requirements in claiming tax credits, the IRS "begin construction" rules, and practical techniques to avoid mishaps that jeopardize tax incentives. The panel will also offer considerations about structuring equity investments in projects so that developers and investors can reap the benefits of the credits.

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Outline

  1. New rules on tax incentives; Extenders Bill
  2. Tax equity structures and considerations for renewable energy facilities and development
  3. Requirements for qualifying for PTC/ITC and pitfalls to avoid, including the IRS "beginning of construction" guidance
  4. Planning following the Extenders Bill and mishaps and pitfalls to avoid in planning qualification for PTC/ITC

Benefits

The panel will review these and other key issues:

  • Key provisions of the Consolidated Appropriations Act of 2020 for renewable energy and their impact on current planning and structures
  • Financing structures for renewable energy projects
  • Requirements for qualifying for the ITC and PTC and pitfalls to avoid
  • Key issues of the IRS "beginning of construction" guidance

Faculty

McCormick, Durham
Durham C. McCormick, Jr.
Partner
McGuireWoods

Mr. McCormick focuses his practice on tax structuring for renewable energy transactions, with a particular emphasis on...  |  Read More

Zaifman, Hagai
Hagai Zaifman
Partner
White & Case

Mr. Zaifman is a Partner in the Firm's Global Tax Practice. He works closely with both the Global Project...  |  Read More

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