New IRS Solar Tax Credit ‘Tests’ Could Boost Industry (1)

New IRS requirements for a solar energy federal tax credit could be a boon for the industry and allow for effective tax planning, practitioners told Bloomberg Tax.

The Internal Revenue Service has established two new tests to guide taxpayers on solar energy property construction requirements for claiming a renewable energy tax incentive, according to guidance released June 22 (Notice 2018-59).

Taxpayers may establish the beginning of construction either through a “physical work test"—starting physical work of “a significant nature"—or by meeting a safe harbor based on having paid 5 percent or ...