IRS Private Guidance Provides Insight on Placed-in-Service Requirements for Wind Projects

On February 3, 2012, the Internal Revenue Service released a private letter ruling regarding circumstances affecting the placed-in-service date of a wind turbine generator project, for both depreciation under IRC sections 167 and 168 and the production tax credit under IRC section 45. As developers work towards the December 31st deadline to complete wind energy projects under current law, the guidance may provide comfort to renewable energy project developers concerned about potential delays in grid interconnection that are outside their control.