The Internal Revenue Service (IRS) recently released Notice 2014-39 clarifying questions related to Section 1603 renewable energy cash grant recipients. The Notice provides that the Section 1603 Payment resulting from sequestration during the affected time period does not affect the amount of the Section 1603 Award or the basis of the specified energy property taken into account for purposes of determining the award. Consequently, taxpayers may not partition the basis of a property to claim both a Section 1603 award and either the renewable energy investment tax credit and/or production tax credit. In addition, the Notice states that basis must be reduced of the energy property by 50 percent of the amount of the actual Section 1603 payment.
Click here to read Notice 2014-39.
