Legal Alert: IRS extends continuity safe harbor for renewable energy projects

On June 29, 2021, the IRS issued Notice 2021-41, which provides a further extension of the continuity safe harbor and revises the “facts and circumstances” rules:

– For PTC and ITC-eligible projects for which construction began in calendar years 2016 through 2019, the continuity safe harbor is extended to six years.
– For PTC and ITC-eligible projects for which construction began in 2020, the continuity safe harbor is extended to five years.
– Under a facts and circumstances analysis, the continuity requirement may be satisfied under either the continuous construction test or the continuous efforts test, regardless of whether the physical work test or the five percent safe harbor is used.

Read the full Legal Alert here.
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