IRS Grants Wind and Solar Sectors Critical COVID-19 Reprieves
The post IRS Grants Wind and Solar Sectors Critical COVID-19 Reprieves appeared first on POWER Magazine.
The U.S. Internal Revenue Service (IRS) has granted a one-year extension of the continuity safe harbor, providing much-needed relief for many wind developers, which, crippled by pandemic-related delays, were racing to complete projects before crucial tax incentives expired at the end of this year.
In its May 27–issued Notice 2020-41, the IRS essentially modified prior notices addressing the “beginning-of-construction” requirements for both the production tax credit (PTC), which applies to renewables facilities under section 45 of the IRS code, and the investment tax credit (ITC), for energy property under section 48.
Responding to pleas by industry and a bipartisan group of lawmakers to extend the so-called “Continuity Safe Harbor,” the IRS now gives qualifying renewables projects that began construction in either 2016 or 2017 until December 2021 to complete projects. As crucially, the new notice also provides a three-and-a-half month safe harbor for taxpayer-paid services or property on or after Sept.…
Siemens Details Spinoff of Energy Business
The post Siemens Details Spinoff of Energy Business appeared first on POWER Magazine.
The parent of Siemens Energy on May 26 provided details of the planned spinoff of the company’s energy business, saying 55% of Siemens Energy will be spun off to Siemens’ shareholders. The company said Siemens shareholders would automatically receive one share of Siemens Energy AG for every two shares they own of the parent, Siemens AG.
The company in its news release Tuesday said Siemens AG plans to further reduce its stake in the new business within 12 to 18 months of the effective date of the spinoff. The company, like others in the power generation business such as General Electric and ABB, has been restructuring its operations as the global energy landscape continues to evolve, with an increased emphasis on renewable power and a lessening of dependence on fossil fuels. ABB in late 2018 announced Hitachi would acquire more than 80% of the company’s Power Grids unit in an $ 11 billion deal.…