Under newly issued guidance, the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) will begin insuring mortgages on qualifying properties with PACE assessments.
Here is a link to an article originally published in State Tax Notes on February 1 in which David Burton and Richard Page discuss the much-criticized Oregon transferable energy tax credit program and provide three lessons that taxpayers involved with state tax credits can learn from that program.
Akin Gump partner, David Burton and Alfa Business Advisors partners, Vadim Ovchinnikov and Gintaras Sadauskas are hosting a seminar on Tax Equity Structuring, Financial Modeling and HLBV Accounting on Wednesday, February 24, 2016. This seminar will be a live presentation in the New York office of Akin Gump and will also be available as a webinar.
Click here to view the poster that David Burton presented at the WINDPOWER conference in Orlando, Florida. The poster details the various structures for tax credits available to wind projects. The poster, using green, yellow and red icons, highlights the strengths and weaknesses of each structure and then provides a diagram of each one. It is specific to wind; however, since 2009, wind projects have had the option to claim the production tax credit or the investment tax credit, and the investment tax credit aspects of the poster also pertain to solar.
Last week, New York State enacted a bud- get for the fiscal year 2015-16 (i.e., April 1, 2015 to Mar. 31, 2016) that continues two tax incentives for the installation of solar energy systems: (1) tax credits conferred to partially offset the costs of such installations, and (2) a sales tax exemption for the retail sale and installation of residential and commercial solar equipment.
In 2012, we expected New York State’s solar energy tax incentives to spur a significant increase in solar energy systems across the state. That expectation has materialized. From 2012 to present, more solar energy equipment was installed in New York State than in the entire decade prior. In 2014, enough solar power was installed in New York State to power 25,000 homes. Accord- ing to the Solar Energy Industries Associa- tion, only six states added more solar energy capacity in 2014. In the order of capacity added, these states are California, North Car- olina, Nevada, Massachusetts, Arizona, and New Jersey. This article briefly summarizes the continuing tax-related solar incentives provided by New York State.
This week, a bill was introduced in the North Carolina Senate to extend the state’s renewable-energy tax credit to eligible property that is placed in service by the end of 2020. Eligible renewable-energy property would include property that is used for either business or nonbusiness purposes. The credit is currently set to expire at the end of 2015. This is a positive step for the North Carolina renewable-energy industry, since the North Carolina Senate has been relatively lukewarm in its support of this credit over the last several years, as compared to the North Carolina House of Representatives. The tax credit, which is equal to 35 percent of the costs of renewable-energy property, is among the most generous of such state incentives in the United States and has helped North Carolina become one of the top states in the nation for new solar-energy construction.
Akin Gump is pleased to announce that David Burton will be speaking in an upcoming Strafford live webinar, “REITs as a Financing Vehicle for Renewable Energy” scheduled for Tuesday, March 3, 1:00pm-2:30pm Eastern. Because of your affiliation with our firm, you are eligible to attend this program at half off. As long as you use the links in this blog, the offer will be reflected automatically in your cart.
The webinar panel will provide guidance on the financing opportunities that REITs present for energy projects as well as the limitations and challenges that must be overcome. The panelists will offer their insights and perspectives on using REITs to finance renewable energy projects while complying with REIT requirements.
On January 13, the Internal Revenue Service (IRS) released Notice 2015-4 which specifies the performance and quality standards that small wind turbines must meet in order to qualify for the 30 percent investment tax credit (ITC).
To qualify as a small wind turbine, the turbine must (i) have a nameplate capacity of 100 KW1 or less and (ii) meet any performance and quality standards specified by the Secretary of the Treasury, after consultation with the Secretary of Energy.2 The Secretary of the Treasury has delegated this authority to the IRS, which often prefers to issue notices rather than promulgate regulations, since the issuance of a notice has fewer procedural hurdles.
The standards adopted by the IRS in Notice 2015-4 are the American Wind Energy Association Small Wind Turbine Performance and Safety Standard 9.1-2009 and the International Electrotechnical Commission 61400-1, 61400-2 and 61400-11. A small wind turbine is required to meet only one of the standards.3