The energy industry hopes that anticipated public guidance regarding Section 45 of the Internal Revenue Code will provide significant clarity on tax credit issues for projects producing electricity from open-loop biomass projects."Currently, there's a logjam when it comes to doing deals involving open-loop biomass projects as the industry does not have clear guidance on various issues," said David S. Lowman Jr., a tax partner in the Energy Practice Group at Hunton & Williams LLP in Richmond, Va., who works with clients on issues related to various energy tax credits.
Lowman met several times with representatives of the IRS as well as the Treasury Department to discuss what the energy industry wishes to see in a forthcoming IRS notice. He said the that notice, expected within the next few weeks, will hopefully break that logjam.
"When the notice comes out, it should address a laundry list of open issues," he said. "Taxpayers will then be able to structure deals in a manner to secure tax credits."
Previously on WebCPA:
Congress Assembles $14B in Energy Tax Breaks (July 29, 2005)
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