David Burton Comments on IRS’s Expected Production Tax Credit Guidance
Akin Gump tax partner David Burton was quoted in the SNL Financial article “GE: IRS guidance on production tax credit likely in a matter of weeks,” which addresses the uncertainty that exists over how wind farm developers could have qualified for the production tax credit (PTC) before the end of 2013.
Last September, the IRS said projects placed in service by the end of 2015 would qualify for the PTC as long as developers met financial safe harbor by incurring at least 5 percent of project costs or started “physical work of a significant nature” by the end of last year. That created a great deal of uncertainty, which, according to the article, affected more than $1 billion of General Electric’s wind equipment orders during the second quarter of 2014.
Burton told the publication many had expected the IRS to release additional guidance earlier this month, but that did not happen. While he’s hoping it will be released soon, he said “it could slip to after Labor Day.”