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Just in Time for Holidays: President Obama Signs ITC and PTC Extension Into Law

On Friday, President Obama signed into law the bipartisan $1.1 trillion Consolidated Appropriations Act of 2016 and the $680 billion Protecting Americans From Tax Hikes (PATH) Act of 2015, better known as the omnibus and tax reform bill and the tax-extenders bill, respectively.

As we discussed in detail in our prior blog post here, the omnibus and tax reform bill includes a multi-year extension of the section 48 investment tax credit (ITC) for solar energy property, section 25D residential energy efficient property credit for homeowners that install and own solar property, and section 45 renewable electricity production tax credit (PTC) for wind. The tax-extenders bill includes a 2-year extension for other renewable energy facilities eligible for the section 45 credit including geothermal, biomass, landfill gas and certain qualified hydropower and marine hydrokinetic energy projects. The tax-extenders bill also extends bonus depreciation 5 years.

These extensions are a huge boon to the renewable energy sector, as the tax credit and bonus depreciation reduce project financing costs and increase profit margins.

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About this Author

John A. Eliason, Foley Lardner, Tax Lawyer, Energy Industry Attorney
Partner

John A. Eliason is a partner and business lawyer at Foley & Lardner LLP. He provides tax, legal, and business advice to financial institutions, equity investors, manufacturers, and project developers in the energy sector and is co-chair of the firm’s Energy Industry Team.

Mr. Eliason regularly represents clients participating in wind, solar, and other renewable energy transactions that rely on tax and other federal and state incentives such as investment tax credits, production tax credits, bonus depreciation, and other government incentive...

202-295-4100
David B. Weisblat, Foley Lardner, Transactional Tax Lawyer, Project Finance Attorney,
Of Counsel

David Weisblat is of counsel and a transactional tax lawyer with Foley & Lardner LLP focusing on federal and state tax issues arising in representing financial institutions, developers, utilities and other participants in energy, project finance and leveraged lease transactions. Mr. Weisblat regularly advises clients on renewable energy projects, including solar, wind and biomass projects. He is familiar with current tax equity structures with an emphasis on sale-leaseback and partnership-flip transactions and advises on utility, commercial and residential projects.

Mr. Weisblat also structures domestic and cross-border energy and project finance transactions of power plants, aircraft, rail equipment and infrastructure assets. He also advises on tax issues associated with climate change policies, including carbon trading. Additionally, Mr. Weisblat represents clients in tax audit and controversy proceedings and advises corporations on tax issues in bankruptcy and restructuring. 

202.295.4176
Kurt R. Rempe, Foley Lardner, Energy, Tax Lawyer, Pipeline Industry
Associate

Kurt Rempe is an associate and business lawyer with Foley & Larder LLP where he focuses on energy and tax law. His experience includes representing clients in tax equity investments in renewable energy projects; and regulatory matters related to the electric, natural gas and oil pipeline industry. Mr. Rempe has electric experience in transmission service and interconnection agreements, power purchase agreements, open access requirements, market-based rates, qualifying facility certification, reliability rules, sales and acquisitions of electric generation assets,...

202.672.5326