On August 29, 2023, the Treasury and the IRS formally proposed rules on the IRA’s prevailing wage and apprenticeship requirements. The new regulations mark the first time developers have received guidance on complying with the IRA’s requirements since November 29, 2022, when the IRS released its initial guidance on the IRA’s requirements and notified the public that those requirements would go into effect for qualified facilities beginning construction on or after January 29,… More
Tag Archives: IRS
IRS Issues Favorable PLR Allowing an Individual Panel Owner in an Offsite, Net-Metered Community-Shared Solar Project to Claim the Section 25D Tax Credit
The Internal Revenue Service has issued a private letter ruling to an individual owner of solar panels installed in an offsite net-metered community-shared solar project confirming the individual’s eligibility for the income tax credit under Section 25D of the Internal Revenue Code. A redacted copy of the PLR 201536017 is available from the IRS’s website here. This PLR provides significant insight into the IRS view on the application of Section 25D to community-shared solar projects.… More
IRS Opens the Door to Expanded Use of Residential Section 25D Credit in Offsite Solar and Other Renewables Projects
The IRS has released new guidance (Notice 2013-70) (the “Guidance”) in the form of a Q-and-A interpreting tax credits available to individual taxpayers under IRC Section 25D (Residential Energy Efficient Property) (the “25D Credit”) and IRC Section 25C (Nonbusiness Energy Property). Particularly noteworthy are the Questions and Answers interpreting the eligibility of off-site installations and net-metering arrangements on individual taxpayers’ eligibility to take the 25D Credit,… More