The Internal Revenue Service has issued Notice 2020-41, which confirms that safe-harbor provisions for the solar Investment Tax Credit (ITC) will be extended until Oct. 15 as a result of the pandemic, giving solar companies more time to qualify for the credit.
“We appreciate the additional layer of clarity the Treasury Department has provided with respect to solar projects started in 2019,” says Erin Duncan, vice president of congressional affairs for the Solar Energy Industries Association (SEIA).
The notice provides assurance to solar developers that started construction by incurring 5% of project costs and made payments for services or property and reasonably expected to receive such services or property within 3.5 months.
If such services or property are received by Oct. 15, the project will satisfy the beginning-of-construction requirement under ITC guidelines and, in turn, limit the impact of COVID-19-related delays on the ability to claim tax credits.
There isn’t any “frontier” aspect to PV technology anymore. We understand it and it has massive deployment. HCPV yes but flat panel & single axis has been mature for 3 years. Put subsidy support where it will propel new technology market development. Even onshore wind has been mature and amounts to pork barrel graft. Offshore is going to be most cost effective and reduce duck curve issues more effectively experts say. Offshore wind in US would have better ROI impacts for rate payers & climate change.
I say let’s get rid of subsidies for everything – oil, gas, coal (have been mature for decades), nuclear, solar and wind. The subsidies for solar and wind are only to compensate for the enormous subsidies for fossil fuels and nuclear.