New IRS Guidance for Energy Tax Credits: IRS Notice 2023-17, Section 48C, Low-Income Communities, and More

Qualified Wind and Solar Projects, Placed-in-Service Considerations, Capacity Limitation, Applications for Capacity Allocation

Note: CPE credit is not offered on this program

A live 90-minute premium CLE video webinar with interactive Q&A

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Wednesday, April 26, 2023

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, March 31, 2023

or call 1-800-926-7926
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This CLE webinar will provide attorneys instruction on key components of recent IRS guidance for Section 48C tax credits, low-income community adder and allocation program, and other items impacting renewable energy investment, development, and production. The panel will discuss what projects are potentially eligible for the Section 48C tax credit, recently issued guidance under Notice 2023-18, applying for an allocation of the credit, and other key items regarding energy tax credits.

Description

The Inflation Reduction Act of 2022 (IRA) created several new tax incentives to enhance the development of clean energy projects. One significant new tax incentive is a 10 or 20 percent additional Section 48 investment tax credit (ITC) for qualified solar and wind facilities located within specified low-income communities or residential developments or on Indian land (Low-Income Bonus Credit). Section 48(e) establishes the requirements to qualify for the Low-Income Bonus Credit. It is important for counsel to understand which solar and wind facilities can potentially qualify, the required procedures, the nuances of existing guidance and unanswered questions for which additional guidance is needed.

Importantly, the Low-Income Bonus Credit is only available to a qualified wind or solar project located in a specified low-income community or development or on Indian land if the project owner applied for and received an allocation of an environmental justice solar and wind capacity limitation (Capacity Limitation) under a new program established by the Secretary of Treasury and administered by the Department of Energy and the IRS (Allocation Program). Treasury and the IRS recently released Notice 2023-17, establishing the Allocation Program and providing some initial guidance regarding the application process, determinations regarding which projects receive Capacity Allocations and placed in service and other requirements to be eligible to claim the increased ITC. Our panel will describe the guidance and requirements under Section 48(e) to assist with navigating the complex process to obtain the Low-Income Bonus Credit.

Listen as our panel discusses what projects are eligible under Section 48C, applying for an allocation of the credit, recent IRS guidance for low-income communities, new green energy tax incentives and requirements under the IRA, and other key items regarding energy tax credits.

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Outline

  1. Overview of energy tax credits and IRS Notice 2023-17
  2. Qualified wind and solar projects
    1. ITC under Section 48
    2. Definition of "low-income community"
    3. Potential eligibility for additional ITCs
  3. Allocation of the capacity limitation
  4. Applications for capacity allocation
  5. Placed-in-service considerations
  6. Challenges and opportunities for clean energy projects

Benefits

The panel will discuss these and other key issues:

  • Overview of energy tax credits under current tax law
  • IRS Notice 2023-17 and key considerations and challenges for clean energy projects
  • ITC under Section 48
  • Definition of "low-income community" and eligibility for additional ITCs
  • Key issues with the allocation of capacity limitations
  • Navigating the application for capacity allocation
  • Placed-in-service considerations and pitfalls to avoid

Faculty

Barakat, Shariff
Shariff N. Barakat
Partner
Akin Gump Strauss Hauer & Feld

Mr. Barakat represents clients involved in the acquisition, development and financing of power generation and...  |  Read More

Conyers, Sabrina
Sabrina N. Conyers
Partner
McGuireWoods

Ms. Conyers is a partnership and corporate tax attorney with more than 18 years of experience providing domestic and...  |  Read More

Levin-Nussbaum, Anne
Anne S. Levin-Nussbaum
Member
Mintz Levin Cohn Ferris Glovsky and Popeo

Ms. Levin-Nussbaum's practice encompasses a broad spectrum of US federal income tax matters, with a particular...  |  Read More

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Early Discount (through 03/31/23)

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