WASHINGTON, D.C. – The Treasury Department and the Internal Revenue Service (IRS) issued guidance today that extends safe harbor provisions for renewable energy projects in order to address impacts from the COVID pandemic. Following is a statement from Gregory Wetstone, President and CEO of the American Council on Renewable Energy (ACORE):
“The COVID pandemic disrupted supply chains, created significant permitting delays and jeopardized the timely completion of many renewable projects. Today’s IRS notice aimed at mitigating those COVID-related impacts is a welcome development and will go a long way toward ensuring these important clean energy projects get done.”
Additional Background on the New Guidance:
- Extends the placed-in-service safe harbor to six years for projects that began construction from 2016-2019;
- Extends the placed-in-service safe harbor to five years for projects that began construction in 2020; and
- Allows taxpayers to demonstrate safe harbor compliance by using the “continuous effort” standard, regardless of how construction of the facility began.
For more than 20 years, the American Council on Renewable Energy (ACORE) has been the nation’s premier pan-renewable nonprofit organization. ACORE unites finance, policy and technology to accelerate the transition to a renewable energy economy. For more information, please visit www.acore.org.
Alex Hobson, Vice President of Communications, ACORE
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