Were you planning a new industrial wind installation to begin construction in 2019 in order to qualify for the reduced 40% production tax credit before it expired for good?
You may now be "frustrated" to learn that your Congress critters and their lobbyist friends have not only extended the PTC into 2020, but also increased it to 60%! That's just soooo unfair! Here you were, doing your best to show that construction of your project began in 2019 (even though IRS regs. allow you to qualify without actually constructing anything), when the rug was pulled out from under you. Stupid Congress!
Production Tax Credit for 2019 = 40%.
Production Tax Credit for 2020 = 60%.
Never fear, taxpayer parasite, these fine folks are here to save your bacon!
You may now be "frustrated" to learn that your Congress critters and their lobbyist friends have not only extended the PTC into 2020, but also increased it to 60%! That's just soooo unfair! Here you were, doing your best to show that construction of your project began in 2019 (even though IRS regs. allow you to qualify without actually constructing anything), when the rug was pulled out from under you. Stupid Congress!
Production Tax Credit for 2019 = 40%.
Production Tax Credit for 2020 = 60%.
Never fear, taxpayer parasite, these fine folks are here to save your bacon!
Because the revised phase-down schedule actually phases the credit "up" for projects beginning construction in 2020 (when compared to projects beginning construction in 2019), taxpayers who may have taken steps to begin construction on projects during 2019 to secure the 40% credit prior to the ultimate PTC expiration date, are likely to be frustrated to learn that they would have been better off delaying their construction efforts until 2020.
Nonetheless, because the determination of when construction of a project has begun is intensely factual and is subject to extensive IRS guidance, taxpayers overseeing projects that are otherwise on the cusp of the "beginning of construction threshold" may be able, with a careful planning, to structure their project and future transactions, so as to allow construction associated therewith to be treated as having begun in 2020 rather than 2019. Successful planning in this regard could translate to significant benefits associated with use of a 60% PTC rather than a 40% PTC.
That's right, with careful planning by these guys, you can now claim 60% PTC, instead of the lousy 40% you had originally carefully planned for.
Apparently actual physical construction doesn't really matter, it's all about the construction date you plan on paper. Don't you just love the IRS?
So, what's wrong with this? It allows industrial wind companies to re-shuffle their papers (plans) to increase their tax credits by 20%. Corporations pay less taxes. But the government still needs money to function, right? So, how does it make up the loss? Because you pay more!
All those wonderful production tax credits for industrial wind corporations don't grow on trees. Although the government prints money, it can't just print an extra little bit to cover this 20% increase in the PTC. Every dollar of production tax credits awarded to these corporations comes out of taxpayer pockets. If corporations pay less taxes, you have to pay more to make up the difference.
And now they have great firms that can re-shuffle their paperwork to increase the credit.
Apparently actual physical construction doesn't really matter, it's all about the construction date you plan on paper. Don't you just love the IRS?
So, what's wrong with this? It allows industrial wind companies to re-shuffle their papers (plans) to increase their tax credits by 20%. Corporations pay less taxes. But the government still needs money to function, right? So, how does it make up the loss? Because you pay more!
All those wonderful production tax credits for industrial wind corporations don't grow on trees. Although the government prints money, it can't just print an extra little bit to cover this 20% increase in the PTC. Every dollar of production tax credits awarded to these corporations comes out of taxpayer pockets. If corporations pay less taxes, you have to pay more to make up the difference.
And now they have great firms that can re-shuffle their paperwork to increase the credit.
RSS Feed