While most energy tax credits benefit taxpayers who own energy efficient improvements, certain credits are reserved for those who construct these improvements — such as real estate developers. Section 45L is one of those special credits that developers can use to their advantage. Thanks to...
Read MoreOn May 31, the IRS published Notice 2023-44, further defining which projects qualify for the enhanced Section 48C tax credits under the Inflation Reduction Act (IRA). Section 48C offers $10 billion in credits for investments in new, expanded or re-equipped manufacturing facilities producing...
Read MoreCommercial building owners and tenants have been entitled to deductions under Section 179D since 2006. While the deduction has served as an incentive to make commercial buildings energy efficient, it may not have been impactful enough to sway decisions on improvements that move the needle. ...
Read MoreHistorically, energy projects have often produced more tax credits than sponsors have the ability to use. This has required sponsors to undergo a significant effort to syndicate the credits, which generally means finding investors with the right tax appetite that will invest in a project in...
Read MoreOn December 28, 2022, the IRS issued proposed regulation REG-100442-22, which may change real estate investment trusts’ (REITs) domestically controlled status. This change could cause non-U.S. investors in these structures to pay potentially significant U.S. tax on any gains realized upon...
Read MoreWith the release of Revenue Procedure (Rev. Proc.) 2023-9 on January 27, 2023, the IRS has simplified the process for real estate developers that incur common improvement costs to switch to the Alternative Cost Method of accounting. This change, which goes into effect for tax years beginning on...
Read MorePosted by Jamie Studer and Alane Boffa
Read MoreThere’s been much talk lately about the clean energy federal tax credits supplied by the Inflation Reduction Act (IRA), particularly regarding bonus and enhanced rates on the renewable electricity production tax credit (PTC) and Investment Tax Credit (ITC). These credits provide competitive...
Read MoreOn August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (IRA). With many provisions derived from the previously proposed but not passed Build Back Better Act, the law introduces, modifies, extends, and bolsters numerous clean energy tax incentives available to both...
Read MoreWith rising interest rates and construction costs soaring, the real estate and construction industry has felt significant pressure recently. Ohio Governor Mike DeWine intends to relieve some of that pressure with Senate Bill 225 (S.B. 225), which he signed into law on June 14, 2022. The bill...
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