Category Archives: Tax

IRS Clarifies Guidance for ITC Qualification

The IRS recently clarified certain conditions for projects to qualify for the investment tax credit.  The clock is ticking on this ITC as described in my post, (Investment Tax Credit Clock Ticking).

The clarifications were:

1. There is now a safe harbor provision that projects put into service by January 1, 2016, will automatically be deemed to qualify as continuous.  Projects put into service after January 1, 2016 will face the burden to prove that construction was continuous to qualify for the ITC.

2. It is the project itself that matters when qualifying for the ITC, not the project owner which, therefore, permits transfers of project ownership during construction.

Click here or copy and paste the following to read a helpful background article on this topic by Wilson Sonsini, the law firm.

IRS Defines Rules for ITC “Begun Construction”

As mentioned in my prior post “Investment Tax Credit Clock Ticking” the tax credit is now available for projects which have begun construction prior to the end of 2013.  Now, the IRS has provided guidance as to what qualifies as “begun construction”.  As with most IRS issues, the rules are complex but fortunately, they’re summarized in the attached article from Foley & Lardner.

Click the link or copy and paste into your browser:



Investment Tax Credit Clock Ticking

By Dennis McCarthy – (213) 222-8260 – –

Welcome to my new website, The Water Business, which picks up from my old Tumblr blog.

My main message in this video is to point out to companies involved in the water business,  that the clock is ticking on a valuable tax credit. This tax credit is worth 30% of qualified investment so it’s significant.

The American Taxpayer Relief Act of 2012, signed into law on January 2, 2013 extended the timing and revised the rules for qualifying for the Investment Tax Credit.

The deadline was extended to the end of 2013 but the more significant change is that in order to qualify, the projects must have begun construction in 2013, not the tougher test of being placed in service in 2013.

Given this more achievable goal before the deadline, your project may qualify.

Click on the link to take you to an article with more information on this topic.

I hope you enjoy my new website and find it helpful. Give me your feedback.

Link to article: