The U.S. Department of Treasury plans to modify the rules regarding the continuity safe harbor for the start-of-construction rules under Treasury guidance for the production tax credit (PTC) and energy investment tax credit (ITC). This plan was announced today, May 7, 2020, in a letter from Frederick W. Vaughan, Principal Deputy Assistant Secretary, Office of Legislative Affairs, U.S. Department of the Treasury to The Honorable Charles E. Grassley, Chairman of the Senate Committee Finance. Although it is not clear what the plans are, the four-year safe harbor presumably will be extended (perhaps to five years, which is what a group of six Senators, including Chairman Grassley, suggested in an April 23, 2020 letter to The Honorable Steven T. Mnuchin, Secretary of the Treasury).
Originally published Mayer Brown, May 2020
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