IRS Issues New Guidance On Beginning Construction Requirement For ITC

The IRS recently issued Notice 2018-59 (the "Notice") which provides clarification to "beginning of construction" for taxpayers seeking to take advantage of the section 48 renewable electricity investment tax credit (ITC) for solar and other renewable energy facilities including qualified fuel cell, combined heat and power, qualified small wind and geothermal heat pump. The Notice largely follows the “begun construction” guidance that the IRS has previously issued for energy facilities that qualify for the production tax credit (PTC), discussed in our blog post here ("Notice 2016-31"), and the follow up guidance that clarifies the beginning construction safe harbor for those facilities, discussed in our blog post here ("Notice 2017-4").