In response to supply chain delays stemming from the coronavirus outbreak and requests from lawmakers, the Internal Revenue Service (IRS) today issued Notice 2020-41, which provides an extra year (from four years to five for projects started in 2016 or 2017) for completing certain renewable energy projects and electricity production from wind, biomass, geothermal, landfill gas, trash, and hydropower.

Key members of the Senate Finance Committee requested the relief in a letter to Treasury Sec. Mnuchin late last month.

The guidance issued today also "provides assurance for taxpayers who started construction by incurring five percent of project costs, and made payments for services or property and reasonably expected to receive such services or property within three-and-a-half months," the IRS explains. "These taxpayers are considered incurred under economic performance rules. The Notice provides that if such services or property are received by October 15, 2020, the taxpayer's expectations at the time of the 2019 payment are deemed reasonable."

The IRS notes that it will not issue private letter rulings or determination letters on Notice 2020-41 or its precursor guidance.

The nine-page text of Notice 2020-41 is posted here.

An IRS press release on the guidance is posted here.

Miller & Chevalier Coronavirus Task Force
The outbreak of COVID-19 is creating significant business and legal challenges for companies throughout the world. In response to client demand, the firm has formed an interdisciplinary task force to help businesses navigate these issues.

COVID-19 Resource Library
We also maintain a resource library of legislative responses and regulatory guidance related to COVID-19.

The information contained in this communication is not intended as legal advice or as an opinion on specific facts. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. For more information, please contact one of the senders or your existing Miller & Chevalier lawyer contact. The invitation to contact the firm and its lawyers is not to be construed as a solicitation for legal work. Any new lawyer-client relationship will be confirmed in writing.

This, and related communications, are protected by copyright laws and treaties. You may make a single copy for personal use. You may make copies for others, but not for commercial purposes. If you give a copy to anyone else, it must be in its original, unmodified form, and must include all attributions of authorship, copyright notices, and republication notices. Except as described above, it is unlawful to copy, republish, redistribute, and/or alter this presentation without prior written consent of the copyright holder.