David Burton Offers Six Takeaways from the IRS’s Start of Construction Guidance

Akin Gump tax partner David Burton has authored the article “6 Key Takeaways From The IRS’ Start Of Construction Guidance: What You Need To Know,” which appeared in North American Windpower.

The article covers a recent American Wind Energy Association (AWEA) webinar that was held to discuss an IRS notice that clarified the rules for wind projects to be grandfathered for production tax credit eligibility purposes as having started construction in 2013. Burton notes there are two ways for projects to have obtained grandfathering status: either spend 5 percent of their cost in 2013 or undertake significant physical work either on or off the project site in 2013.

Burton then provides six takeaways from the webinar:

  • Size of a project does not matter.
  • The excavation process can be cut short due to winter.
  • No binding written contract requirement for on-site work.
  • One level of look-through for the 5 percent safe harbor.
  • The final project did not have to be in the developer’s sights in 2013.
  • Don’t traffic in safe-harbor turbines.

For more on the AWEA webinar and the IRS guidance, click here to read a blog post by Burton.