IRS Notice 2018-59 Clarifies Rules on Beginning of Construction of Solar Facilities to Qualify for the Investment Tax Credit

(July 3, 2018) From K&L Gates: Authors: Charles H. Purcell, Jason P. Walton, Elizabeth C. Crouse, Won-Han Cheng, Rachel D. Trickett.

On June 22, 2018, the U.S. Department of the Treasury (“Treasury”) issued Notice 2018-59 (the “Notice”), which deals with the “begin construction” test that is applicable to solar projects. More specifically, the newly issued guidance clarifies the eligibility requirements applicable to the Investment Tax Credit (“ITC”) claimed in connection with solar projects, closely following the “begin construction” guidance Treasury has previously issued for wind developers in order to determine eligibility for the production tax credit (“PTC”). You can read about previously published Treasury guidance in our prior e-alerts on this topic.