The U.S. Treasury Department and the Internal Revenue Service extended the renewable energy tax credit window on Wednesday May 27th. As a result, renewable energy facilities will have more time to qualify for production tax credits (PTCs) and investment tax credits (ITCs). The plan extends the Continuity Safe Harbor for projects that began construction in calendar year 2016 or calendar year 2017.
The notice provides a three-and-a-half-month Safe Harbor for services or property acquired by a taxpayer on or after September 16, 2019 and received by October 15, 2020. Under Internal Revenue Code section 45, certain tax credits were established for the production of electricity from qualified energy resources and at a qualified facility. The tax credits are scheduled to last for a 10-year period following a facility being placed into service. The extension is expected to help the clean energy industry which has lost approximately 600,000 jobs since the COVID-19 pandemic began, including an estimated 70,000 jobs in the renewable energy space, according to some experts.