Qualifying Advanced Energy Project Program: IRS Announces Second Phase

DWT tax partner Pamela Charles reports: Last month, the IRS announced the second phase of the qualifying advanced energy project program to distribute the Section 48C tax credits that are available for reallocation now that the first phase of the program has been completed (see IRS Notice 2013-12).  To be considered for an allocation of credits in the Phase II program, taxpayers must submit concept papers to the U.S. Department of Energy by April 9, 2013 and applications to the DOE and IRS by July 23, 2013. Qualifying advanced energy project credits are equal to 30% of the taxpayer’s qualified investment in a qualifying advanced energy project, which includes a project that re-equips, expands or establishes a manufacturing facility for the production of specified advanced energy property.  Specified advanced energy property includes property designed for use in the production of energy from sun, wind, geothermal deposits or other renewable resources, fuel cells, microturbines, energy storage systems, electric grids to support the transmission of intermittent sources of renewable energy, property designed to capture and sequester carbon dioxide, property designed to refine or blend renewable fuels or to produce energy conservation technologies, new plug-in electric drive motor vehicles or components and other property designed to reduce greenhouse gas emissions as may be determined by the IRS.