IRS Modifies Guidance on Safe Harbor for Wind Energy Partnerships
By Michael D. Haun, Kevin Young, and Sean C. Honeywill
On September 21, 2009, the IRS issued Announcement 2009-69 (the 2009 Announcement) to revise portions of a 2007 IRS pronouncement concerning the production tax credit (the PTC) under Section 45 of the Internal Revenue Code of 1986 (as amended) (the Code). The earlier guidance provided a safe harbor for a partnerships allocation of PTCs earned for generating electricity from wind resources. After providing a brief overview of the PTC, our alert details the changes effected by the 2009 Announcement.