McGuireWoods Houston partner
Durham McCormick and Richmond associate
Emily Winbigler were featured in a
Jan. 30, 2020, Corporate Counsel Business Journal Q&A on the implications of the upcoming end to the continuity safe harbor for
claiming production tax credits (PTCs) on wind turbines.
In the interview, the lawyers addressed IRS guidance, how to meet PTC
eligibility requirements, how to satisfy the continuous efforts test or the
continuous construction test, and investors’ willingness to take risk on
“The IRS’ list of excusable disruptions includes factors that would
reasonably cause parties to pause the development of a project, but in some
cases the list doesn’t line up well with the business needs of developers
and investors in this space,” said Winbigler.
They also recommended steps developers should take to maintain
qualification for the PTC.
Collect all information necessary to satisfy the tests, “but also organize
and distill it into understandable spreadsheets and graphs so that an
investor or IRS can quickly understand the good work that was done on a
continuous basis,” McCormick said.