David Burton Discusses Production Tax Credit with Environmental Finance Magazine
Environmental Finance magazine quotes Akin Gump tax partner David Burton extensively in the article “US wind celebration muted by slow restart, capital questions.”
Burton discusses the extension of the production tax credit (PTC) for wind projects that was included in the “fiscal cliff” vote in Congress. Although the PTC was continued, Burton says the delay in the vote will likely lead to “slightly less capacity this year than last year” with regard to new installations.
Financing will also be an issue in the coming year, Burton notes, as the wind market “would benefit from many more tax equity players and traditional debt providers.” He adds that the ability to write off investments in new property and equipment on one’s tax returns—the bonus depreciation allowance—is great “if you’re a developer that can find tax equity to use it. But … [it] would certainly be better news for the industry if there were more investors willing to use it.”
Burton also is quoted in the Politico article “Wind industry awaits tax guidance on PTC rule,” discussing a key component of the PTC that could affect one’s eligibility under it. At issue is when new projects must begin in order to take advantage of any tax breaks. Burton says new guidance on the rule will either come from the Joint Committee on Taxation, the Internal Revenue Service or the Treasury Department.