On May 18, 2016, the Internal Revenue Service (IRS) revised
Notice 2016-31 (Notice), its recent guidance on meeting the
beginning of construction requirements for wind and other qualified
facilities (including biomass, geothermal, landfill gas, trash,
hydropower, and marine and hydrokinetic facilities). For a
discussion of the Notice, click here. The revisions clarify that the
Continuity Safe Harbor is satisfied if a taxpayer places a facility
into service by the later of (1) the calendar year that is no more
than four calendar years after the calendar year during which
construction of the facility began, or (2) December 31, 2016. The
revisions also include additional language that the Notice applies
to any project for which a taxpayer claims the Section 45
production tax credit (PTC) or the Section 48 investment tax credit
(ITC) that is placed in service after January 2, 2013.
