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Treasury Agrees to Extend Tax Credit Safe Harbor for Wind and Solar Projects But Is Silent on Specifics

Treasury Agrees to Extend Tax Credit Safe Harbor for Wind and Solar Projects But Is Silent on Specifics Background Decorative Image

In a letter dated May 7, 2020 to a bipartisan group of senators, the Treasury Department has indicated that it plans to modify the continuity safe harbor for tax credits on wind and solar projects currently under construction. The senators had urged Treasury to extend the safe harbor from four years to five in order to address concerns that wind and solar projects currently under construction may lose anticipated tax credits due to market disruptions caused by COVID-19, but Treasury’s letter lacks specifics. We are monitoring this development closely and will provide an update on the details of these safe harbor extensions when available.

This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.