A-Power Energy Generation Systems, Ltd.(fka APWR)

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Wind Farm Related News : PTC 2013 IRS Calrifies Rules

IRS has finally clarified the “under construction” provision in the PTC (production tax credit.)

According to IRS Notice 2013-29, released on April 15, wind, geothermal, biomass, landfill gas, incremental hydroelectric and ocean energy projects that meet one of two under-construction standards by December 31 of this year will qualify to either get: 1) a tax credit of $0.023 for every kilowatt-hour produced for the first ten years of the project’s life, or 2) an investment tax credit equal to 30 percent of the project’s cost when construction is completed.

To meet the "under construction" qualification, developers must either: 1) show “physical work of a significant nature” has begun on their project, either a) at the site, or b) in a factory to which the developer has given a binding order for specially designed equipment, or 2) show that at least 5 percent of the total project cost has been incurred.

There is no completion deadline for projects that meet the "under construction" standards by December 31.

http://www.greentechmedia.com/articles/read/Good-News-From-the-IRS-on-the-PTC-For-Wind-And-Geothermal