The IRS has extended the guidance deadlines (Notice 2015-25) for
establishing that construction has begun on a facility eligible for
the renewable electricity production tax credit (PTC) under Section
45 or the energy investment tax credit (ITC) under Section 48.
The Tax Increase and Prevention Act of 2014 pushed back the
expiration dates for the PTC and ITC by one year. Under the law,
construction must now have begun on a qualified project before Jan.
1, 2015, to be eligible for the PTC. Taxpayers may also elect to
take the 30% ITC in lieu of the PTC on these projects.
Under guidance issued in Notice 2013-29, Notice 2013-60 and
Notice 2014-46, the IRS provided that taxpayers can establish that
construction has begun by either satisfying a test showing
"physical work of a significant nature" has begun or by
incurring 5% or more of the total cost of the facility under a safe
harbor.
