New Energy Wins Big In COVID Relief Bill

Renewable energy tax credits extended

Keith Martin, December 22, 2020 (Norton Rose Fulbright)

“…Many renewable energy developers are scrambling to reevaluate arrangements they put in place this year…[after a last-minute bill extended] deadlines for developers of solar, wind, fuel cell, geothermal, biomass, incremental hydroelectric and other renewable energy projects to start construction of new projects to qualify for federal tax credits…The measure also authorizes a 30% investment tax credit for offshore wind projects that start construction as late as 2025 and allows a similar tax credit to be claimed on new power plants of up to 50 megawatts in size that generate electricity using waste heat from buildings and other equipment…

click to enlarge

…[Solar projects] on which construction starts in 2020, 2021 or 2022 will qualify for a 26% investment tax credit…The tax credit drops to 22% for projects starting construction in 2023…All such projects must be placed in service by the end of 2025…A project slipping past 2025 qualifies for only a 10% investment tax credit…Wind projects on land [now have until the end of 2021 to start construction to qualify]for production tax credits at 60% of the full rate on the electricity output for 10 years or an 18% investment tax credit on the project cost…Any offshore wind project on which construction starts after 2016 through the end of 2025 will qualify for a 30% investment tax credit…Oher renewable energy projects that qualify for production tax credits [must be] under construction by [the end of 2021]…” click here for more

click to enlarge

Tweet