On March 11, 2015, the Internal Revenue Service (IRS) issued Notice 2015-25, which updates its prior guidance to reflect the extension of the beginning of construction deadline for the PTC and ITC made by the Tax Increase Prevention Act of 2014 (TIPA). TIPA extended the deadline from January 1, 2014, to January 1, 2015. Industry participants have been anxiously awaiting the IRS guidance since TIPA became law in late 2014.
Notice 2015-25 updates Notice 2013-29, Notice 2013-60, and Notice 2014-46 to reflect the extended deadline. Prior guidance had allowed a facility to be deemed to satisfy the continuous construction test or the continuous efforts test if a taxpayer had begun construction on the facility before January 1, 2014, and places the facility in service before January 1, 2016. Quite helpfully, Notice 2015-25 extends this special rule and clarifies that a facility will be deemed to satisfy the continuous construction test or the continuous efforts test if a taxpayer begins construction on the facility before January 1, 2015, and places the facility in service before January 1, 2017.
Please see our previous client alerts for Notice 2013-29, Notice 2013-60, and Notice 2014-46. A copy of Notice 2015-25 is available here.
For more information, contact one of the lawyers listed with this advisory.