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IRS Extends Beginning-of-Construction Rules for Renewable Energy Tax Credits

As a result of the Coronavirus pandemic, Notice 2020-41 extends the beginning-of-construction rule for renewable energy tax benefits under sections 45 and 48. Specifically, the notice extends the Continuity Safe Harbor for both the production tax credit for renewable energy facilities under Section 45 and the investment tax credit for energy property under Section 48 for projects that began construction in either calendar years 2016 or 2017. The Notice also provides a 3½ Month Safe Harbor for services or property paid for by the taxpayer on or after September 16, 2019, and received by October 15, 2020.