This is a follow-up to the post from my colleague, Susan Reaman, of a couple of days ago. As Susan noted, the IRS has just published some additional guidance, Notice 2013-29, about the “begun construction” test that applies to the investment tax credit (ITC) and production tax credit (PTC) for certain renewable energy facilities. The affected facilities are those that use wind, electricity-generating geothermal, biomass, landfill gas, municipal solid waste, hydroelectric production and marine and hydrokinetic energy, but not several others, particularly those that use solar energy or fuel cells.
As Susan noted, the facilities must begin construction in 2013 in order to qualify for the ITC or the PTC. I've recently posted a client alert that discusses two aspects of the new notice in a bit more detail – the continuity requirement, and the ability to transfer projects before the credit is claimed. You can access the client alert here: http://www.nixonpeabody.com/latest_on_the_new_begun_construction_test_for_renewable_facilities