Delayed effective date, small wind energy property certification

Small wind energy property certification

The IRS today released an advance version of Notice 2015-51 that provides a revised effective date for certain “small wind energy property” to qualify for the energy credit under section 48.

Related content

The new effective date is December 31, 2015, for small wind energy property using a wind turbine having a rotor swept area of more than 200m2.

Prior IRS notice

On February 2, 2015, Notice 2015-4 was published in the Internal Revenue Bulletin 2015-5 [PDF 1.3 MB] to serve as guidance for the energy credit under section 48, and setting forth the performance and quality standards that small wind energy property must satisfy to qualify for the section 48 credit.

As originally published, Notice 2015-4 was effective for small wind energy property acquired or placed in service (if property constructed, reconstructed, or erected by the taxpayer) after February 2, 2015.

Delayed effective date

According to today’s notice, the IRS became aware of the inability of manufacturers of certain property to immediately complete the certification process relating to the performance and quality standards of the International Electrotechnical Commission (IEC). These standards concern a rotor swept area of 200m2.

In response to this information, Notice 2015-51 [PDF 11 KB] delays an effective date provision of Notice 2015-4.

With today’s notice, the provisions under Notice 2015-4 are effective for small wind energy property acquired or placed in service (in the case of property constructed, reconstructed, or erected by the taxpayer):

  • After February 2, 2015, if the small wind energy property uses a wind turbine having a rotor swept area of 200m2 or less
  • After December 31, 2015, if the small wind energy property uses a wind turbine having a rotor swept area of more than 200m2

© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform