Greg Jenner Discusses IRS PTC Guidance with @SNLFinancial

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Stoel Rives attorney Greg Jenner discussed with Michael Copley of SNL Financial the recently issued IRS guidance regarding the federal production tax credit's "continuous construction" and "continuous efforts" tests. In the guidance, the IRS said facilities that are placed in service before January 1, 2016 will qualify for safe harbor under these tests for the PTC.

Jenner said the clarification is good news for developers that are on pace to beat the 2016 in-service deadline, but does little for projects with longer lead times. Tax equity capital seeks certainty, Jenner said, and thus the guidance can be expected to drive investment to projects that will be in service before 2016. He noted that the nonbinding deadline creates a "cliff effect" that "will have a significant practical effect in the marketplace."

Jenner said taxpayers would welcome further clarification from the IRS regarding how it will evaluate "continuous efforts" under the PTC, particularly for projects that are not in service by 2016.

Read the SNL article (subscription required)

Read the Stoel Rives client alert regarding the guidance

"IRS clarifies PTC guidance; all eligible projects online by 2016 will qualify" was published by SNL Financial, September 23, 2013.

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