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IRS Updates Beginning of Construction Guidance for Renewable Energy Tax Credits Extended by PATH Act

On May 5, 2016, the Internal Revenue Service (IRS) issued Notice 2016-31, which updates prior guidance regarding the beginning of construction requirement for IRC sections 45 and 48 renewable energy tax credits following extensions of those credits in the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). (See Sutherland’s December 17, 2015 Legal Alert regarding the PATH Act’s impact on the energy industry.)

Highlights of the Notice include the following:

The Notice does not address the PATH Act’s section 48 extension for solar facilities. Separate guidance is expected to be issued with respect to that extension.

A more complete analysis of the Notice will follow.