Reed Asks Treasury to Extend Safe Harbor Timeline for Business Credits
Reed Asks Treasury to Extend Safe Harbor Timeline for Business Credits
- AuthorsReed, Rep. Tom
- Institutional AuthorsU.S. House of Representatives
- Subject Area/Tax Topics
- Jurisdictions
- Tax Analysts Document Number2020-20311
- Tax Analysts Electronic Citation2020 TNTF 103-16
May 11, 2020
The Honorable Steven Mnuchin
Secretary of the Treasury
Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220
Dear Mr. Secretary:
I write today in support of a needed modification to the continuity safe harbor provided under existing Department of the Treasury guidance for the production tax credit (PTC) and the energy investment tax credit (ITC). An extension of the safe harbor provisions is very much appreciated and will allow projects facing supply-chain issues as a result COVID-19 to continue to qualify for the credits.
Along with the extension of the safe harbor timeline, I also express my support for modifying the continuity standard to a continuous efforts test, rather than continuous construction. Many energy projects, through no fault of their own, will be unable to meet a continuous construction test even with the extension of the safe harbor timeline. Use of a continuous efforts test, however, will provide needed tax certainty to these projects as they face the uncertainties of supply-chains during this health crisis.
Thank you for your continued attention to this matter.
Sincerely,
Tom Reed
Member of Congress
- AuthorsReed, Rep. Tom
- Institutional AuthorsU.S. House of Representatives
- Subject Area/Tax Topics
- Jurisdictions
- Tax Analysts Document Number2020-20311
- Tax Analysts Electronic Citation2020 TNTF 103-16