The Department of the Treasury responded to a request from a bipartisan group of senators to extend the ITC safe harbor deadline by one year for energy projects that started construction in 2016 or 2017, saying in a letter that it “plans to modify the relevant rules in the near future.”
“We are pleased about the Treasury Department’s action to advance clean energy projects. While this mostly applies to wind projects, flexible policies such as this one that unlock clean energy are very positive and we urge Congress to take a similar approach to developing legislation that unleashes new solar and wind projects and the economic growth that comes with them,” said Dan Whitten, VP of public affairs at SEIA, in a statement.
“We are encouraged by the Treasury Department’s letter announcing its intent to modify time-sensitive safe harbor deadlines for renewable energy tax incentives,” said Gregory Wetstone, president and CEO of the American Council on Renewable Energy (ACORE), in a statement. “Extending these safe harbor deadlines would be immensely helpful as the renewable sector has been hit hard these last couple of months by supply chain disruptions, shelter-in-place orders and other significant pandemic-related delays. We look forward to further detail on this critical issue, and extend our appreciation to the Treasury Department for this important step, which will help the renewable sector continue as a key economic driver through this downturn, and an effective climate solution over the long haul.”
The Treasury’s letter is below.