The DOT issued guidance on the “start of construction” rules for solar projects wanting to safe harbor the 48E ITC and 45Y PTC. Apparently, the new guidance makes it harder for projects to qualify for credits, but the changes aren’t as bad as rumored. Treasury discarded the bright-line 5% capital expenditure test for starting construction of solar projects over 1.5 MW, and projects under 1.5 MW can still achieve tax credit eligibility by showing a 5% capital expenditure.
DOT releases guidance re start of construction for safe harbor
