IRS May supplement — start-of-construction guidance - .PDF file.
The Internal Revenue Service (IRS) has had a flood of calls about a suggestion that turbine supply agreements and other construction or equipment contracts should not have liquidated damages provisions. The suggestion was in guidance the IRS issued this week about what renewable energy developers must do by year end to be considered to have started construction of new projects. Wind, geothermal, biomass, landfill gas, incremental hydroelectric and ocean energy projects that are under construction by year end qualify for production tax credits for 10 years on the electricity output or an investment tax credit upon completion for 30 per cent of the project cost.
Click on the link above to download this briefing from Chadbourne & Parke.