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ACT NOW to Extend the ITC

Yesterday an important update regarding the fight to extend the Investment Tax Credit (ITC) was sent out from the President & CEO of SEIA, Abigail Ross Hopper. SEIA has been spearheading advocacy for the extension of the ITC for months and has reached a critical juncture in the effort.

A strong call to action has been set by the SEIA team noting that, “…intel from Capitol Hill indicates that lawmakers are on the cusp of a deal on tax legislation as we speak, and it is time to pull out all of the stops and make our voices heard in Congress.”

The ask is simple: urge your representatives to speak with House Leadership and ensure an ITC extension is included in legislation before the end of the year.

To aid in this effort, SEIA has prepared scripted materials and an online form to find legislatures near you. This won’t take more than 5 minutes of your time and the info submitted will not be added to any email list. In case you missed it, here is a link to SEIA’s recent email explaining this update.

Now is the time to mobilize your team and get on the phones to call your local Representative.

Extending the 30% ITC in 2019

Please note, this material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Whether you’re a trained and savvy solar professional or only started looking into solar yesterday, this article will provide you with everything you need to know as we approach the first year of the tax incentive decline.  The remainder of 2019 will be the last chance for those involved in the solar industry to exploit the full 30% credit before it steps down from 30% to 26%. In order to best advise today’s customers and clients, contractors and distributors alike will need to familiarize themselves with the rules and regulations surrounding the “Commence Construction” Clause.

Beginning with the Energy Policy Act in 2005, solar professionals throughout the US have been attentively keeping an eye out for any and all information regarding the first major government regulated incentive towards renewable energy technologies- the Investment Tax Credit (ITC).  This enactment of the ITC was the first time that solar energy project owners were offered access to a 30% tax credit on a cost basis of their qualified energy property in the year that it was first put into service.

In 2015, on the eve of the expiration of the original 30% ITC, Congress approved the  Consolidated Appropriations Act of 2015 (P.L. 114-113).  This included an extension of the 30% ITC for both commercial and residential projects through Dec 31, 2019, with a step down to 26% in 2020, and 22% in 2021. In 2022 the remaining 10% tax credit would remain intact for commercial projects only. In addition to extending the ITC tax credit, this Act also amended the requirement for qualifying a project from having to be “in-service” to instead needing to have “commenced construction”.  According to the IRS Notice 2018-59, the two steps necessary to indicate that you’re eligible for this year’s tax credit under the “commence construction” clause are as follows:

  1. PHYSICAL WORK TEST: SECTION 4.02-.04: “The Physical Work Test requires that a taxpayer begin physical work of a significant nature.  This test focuses on the nature of the work performed, not the amount or the cost.” This work performed can include the installation of racks or other various structures to attach PV panels, collectors, or solar cells to the site (4.02.2.A).  This does not include any preliminary activities such as planning or designing an array design, obtaining permits or licenses, securing financing, the clearing of a site, or conducting geophysical/environmental/engineering surveys of the site (4.03). It is important to note that physical work also does not include the effort involved in producing “the components of the energy property that are either in existing inventory or are normally held in inventory by a vendor.”

    1. Continuous Construction Test (Section 6): “Involves continuing physical work of a significant nature. Whether a taxpayer maintains a continuous program of construction to satisfy the Continuity Requirement will be determined by the relevant facts and circumstances.”

  2. FIVE PERCENT SAFE HARBOR: SECTION 5. 01-.02: “Construction of energy property will be considered as having begun if: (1) a taxpayer pays or incurs 5% percent or more of the total cost of the energy property, and (2) the taxpayer makes continuous efforts to advance towards completion of the energy property” (5.01).  Meaning that the estimated total of all costs of the energy venture in question are taken into account when trying to evaluate whether or not the Five Percent Safe Harbor standard has been established.  This total does not include the price of the land intended to house the energy property.

    1. Continuous Efforts Test (Section 6): “Whether a taxpayer makes continuous efforts to advance towards completion of an energy property to satisfy the Continuity Requirement includes, but is not limited to: (a) paying additional amounts included in the total cost of the energy property; (b) entering into binding written contracts for the manufacture, construction, or production of components of property or for future work to construct the energy property; (c) obtaining necessary permits; and (d) performing physical work of a significant nature.”

“Do I have to complete both of these steps before January 1, 2020 in order to satisfy the requirements necessary to receive the 2019 tax credit?”

– In section 3.02 of the IRS Notice 2018-59, it is explained that while yes solar project taxpayers must implement both of these actions in order to qualify the “commence construction” clause, the construction will be considered to be underway starting on the date the taxpayer first establishes the first of these two methods.  “For example, if a taxpayer performs physical work of a significant nature on [the] energy property in 2018, and then pays five percent or more of the total cost of the energy property in 2019, construction will be deemed to begin in 2018 under the Physical Work Test, not in 2019 under the Five Percent Safe Harbor” (Section 3.02).

“I heard I have 4 years to complete my energy project and still apply for the ITC credit level of the year in which I first “Commenced Construction”, is that true?”

  • According to an article released by McDermott the answer is technically yes, but let me explain. This notice clarifies that after a commercial project has been approved for the ITC (aka the taxpayers have been able to purchase equipment equal to 5% of anticipated project costs and passed the Physical Work Test) in 2019 it will permit projects placed in service up until January 1st, 2023 to qualify for the ITC at the current 30% rate from 2019.  Although it is important to note that construction and significant payments of the energy property must continue throughout this 4 year time period to remain in good graces for the Continuity Safe Harbor.

  • “If a taxpayer places an energy property in service by the end of a calendar year that is no more than four calendar years after the calendar year during which construction of the energy property began (“the Continuity Safe Harbor Deadline”), the energy property will be considered to satisfy the Continuity Safe Harbor.  For example, if construction begins on an energy property on January 15, 2018, and the energy property is placed in service by December 31, 2022, the energy property will be considered to satisfy the Continuity Safe Harbor (Section 6.05).”

Based on the information gathered from the IRS Report 2018-59 to claim the 30% ITC this year all you have to do is: Make a 5% payment on the total cost of the system in conjunction with a written contract to guarantee the continuous development of the solar array, or begin physical work of a significant nature in regards to the installation process (ie. “racking or other structures to affix PV panels, collectors, or solar cells to a site”) before January 1st, 2020.

Claim your tax credit now!

Find all the information you need from Solar Power Rocks

Sources:

https://blog.aurorasolar.com/

https://www.greentechmedia.com/

https://www.greentechmedia.com/

https://www.seia.org/

https://www.seia.org

https://www.irs.gov/

https://www2.deloitte.com/

https://www.mwe.com/

https://www.seia.org/

Image:

https://www.reddit.com/

Tell National Grid No Rate Hikes For More Fossil Fuels

Right now, National Grid proposes to raise our monthly bills so they can expand fracked gas infrastructure in New York City and Long Island. This will keep us dependent on their partnership with the fossil fuel industry and profits over people when more fossil fuels goes against science and New York’s climate law. Customers feel this is abuse of their monopoly status. We must flood the public comment portal with letters. We made it easy for you to take action with this letter-writing prompt that will be delivered directly to the Public Service Commission (PSC).

Watch our fun 2 minute video about how monopoly utilities work in New York, and how we can build people power to direct them to equity and renewables.

National Grid has proven time and time again they can’t be trusted. This month, our Public Service Commission found they committed 1,616 violations while working on fracked gas pipeline expansion and they have been recklessly pushing for the Williams Pipeline without proving a need for it.

National Grid is suppose to be a public utility so it’s time they listen to us! And we say no more fracked gas expansion! Let’s tell them what we think in this easy letter generator that goes right to the decision maker, the NY Public Service Commission (PSC).

national-grid-nyseg-utility-rate-hikes-solar-reduce-electric-bill

Then call Governor Cuomo today, and all week

national-grid-purchase-solar-panels-grid-home-house

 

Come to our FREE WORKSHOP to build people power around corporate utilities RSVP HERE

sane-energy-campaign-community

New York’s Nation-Leading Green New Deal

As global average temperatures climb to the highest levels in modern history, there is unanimous scientific consensus that in order to avert the most damaging, irreversible effects of a changing climate, we have no more than a decade to dramatically change course. That is why today, as part of the State of the State, Governor Andrew M. Cuomo announced the most aggressive clean energy targets in the nation under New York’s Green New Deal – a nation-leading clean energy and jobs agenda.

New York will move boldly to achieve these goals with specific near-term actions and long-term strategies to spur unparalleled innovation and transform the State’s electric, transportation, and building infrastructure while prioritizing the needs of low-income New Yorkers. These commitments begin by putting New York on a path to achieve carbon neutrality across all sectors of New York’s economy and directing a mandate for New York’s power to be 100 percent carbon-free by 2040, dramatically accelerating the State’s clean energy efforts.

The highlights of today’s announcements are as follows:

Mandate 100% Clean, Carbon-Free Electricity by 2040 
The cornerstone of this new mandate includes a significant increase of New York’s Clean Energy Standard where the share of the State’s electricity coming from renewable resources will go up from 50 percent to 70 percent by 2030. This will be supported by several critical components:

  • Quadrupling New York’s offshore wind target to 9,000 megawatts by 2035, up from 2,400 megawatts by 2030
  • Doubling distributed solar deployment to 6,000 megawatts by 2025, up from 3,000 megawatts by 2023
  • Deploying 3,000 megawatts of energy storage by 2030
  • More than doubling new large-scale land-based wind and solar resources through the Clean Energy Standard
  • Maximizing the contributions and potential of New York’s existing renewable resources
  • Expanding and enhancing the Solar For All program to increase access to affordable and clean energy for low-income, environmental justice and other underserved communities

100% Carbon Neutral Economy-Wide
To help implement the Green New Deal, Governor Cuomo is creating the State’s first statutory Climate Action Council, comprised of the heads of relevant state agencies – including NYSERDA – and other labor, environmental justice, and clean energy experts to develop a plan to make New York entirely carbon neutral. The Climate Action Council will commence its work immediately in order to support the development of the next State Energy Plan over the next two years and will provide meaningful opportunities for public comment as it develops New York’s first carbon neutrality roadmap.

Large-Scale Renewable Awards
To demonstrate the State’s commitment to this ambitious clean energy agenda, Governor Cuomo is announcing $1.5 billion in competitive awards to support 20 large-scale solar, wind and energy storage projects across upstate New York. These projects will drive a total of $4 billion in direct investment in the New York’s growing clean energy economy, as well as add enough clean energy to power nearly 550,000 homes and create over 2,600 jobs.

Offshore Wind Energy
Alongside what is now the largest offshore wind commitment in the nation – 9,000 megawatts by 2035 – New York is investing $200 million in New York port infrastructure to unlock private supply chain capital and maximize the long-term economic benefits to the State from the regional development of offshore wind. This multi-location investment would represent the nation’s largest infrastructure commitment to offshore wind and reaffirms New York’s position as the hub of the burgeoning U.S. offshore wind industry.

The Governor is also directing the establishment of a New York State Advisory Council on Offshore Wind Economic and Workforce Development, as well as investing in an offshore wind training center in New York. Finally, the Governor is directing a first of its kind effort to evaluate developing an offshore transmission grid.

Carbon Neutral Building Stock Statewide
Furthermore, the Green New Deal includes an ambitious strategy to move New York’s statewide building stock to carbon neutrality by:

  • Developing a Net Zero Roadmap to chart a course to statewide carbon neutrality in all buildings
  • Advancing legislation, including enhanced building codes and appliance efficiency standards, to promote energy efficiency
  • Directing the Public Service Commission (PSC) to ensure that New York’s electric and gas utilities achieve more scale and innovation to achieve the State’s 2025 energy efficiency target
  • Directing State agencies to lead by example to ensure that their facilities uphold the strongest energy efficiency and sustainability standards

Climate Justice
Governor Cuomo is committed to ensuring that New York’s transition to a clean energy economy protects the poorest New Yorkers and provides new economic opportunities. As part of the Green New Deal, the Governor is codifying the Environmental Justice and Just Transition Working Group into law and incorporating it into the planning process for the Green New Deal’s transition. To increase the effect of funds and initiatives that target energy affordability, the Governor is also directing the State’s low-income energy task force – comprised of NYSERDA, the Department of Public Service (DPS), the Office of Temporary and Disability Assistance (OTDA), and New York State Homes and Community Renewal (HCR) – to identify reforms to achieve greater impact of the public energy funds expended each year, such as the $700 million in funds spent each year for bill assistance. Finally, the Governor is directing each of the State’s ten Regional Economic Development Councils (REDCs) to develop an environmental justice strategy for their region.

State Government Divestment
Governor Cuomo is directing State agencies and authorities, public benefit corporations, and the State Insurance Fund, which collectively hold approximately $40 billion in investments, to commence a process to review divesting from fossil fuels.

NY Green Bank
Governor Cuomo announced in the fall of 2017 that NY Green Bank would raise at least $1 billion of private capital and expand its clean energy investing activities nationally. To deliver on that commitment and further support the Green New Deal, Governor Cuomo is now calling for the development of terms for a public-private partnership to effectuate NY Green Bank’s third-party capital raise and national expansion.

Carbon-to-Value
Governor Cuomo is directing a new Carbon-to-Value Innovation Agenda alongside $15 million of NYSERDA funding to invest in new technologies that can help avoid the worst consequences of climate change, such as capturing carbon dioxide from the atmosphere and transform it into products, known as carbon-to-value. Furthermore, New York is establishing a new incubator and accelerator dedicated to these technologies, called the CarbonWorks Foundry, and is creating a framework for a low-carbon procurement standard to spur a market for low-emissions products.

With the Governor’s Green New Deal, we have a lot to look forward to in the year ahead. NYSERDA is looking forward to working closely with all stakeholders to chart an entirely new path forward towards a clean energy future for the benefit of all New Yorkers. Thank you for your support and partnership.

***via***
New York State Energy Research & Development Authority (NYSERDA)

Time to Get Pumped

Learn about renewable heat pumps in our homes and communities. Today’s heat pumps are more efficient and fossil-fuel free. Heat pumps extract heat from the air or ground to heat the air or water in your building. They can also work in reverse as air conditioners!Register here for our Online Teach-in on Renewable Heat on Thursday, March 28th at 7pm to learn about renewable heating & cooling technologies & policies. 

And don’t forget to Save-the-Date
for this year’s Climate Solutions Summit
at SUNY New Paltz on Saturday, September 21st!

The Summit provides an opportunity for organizers and communities 
to come together to share projects, case studies, resources, experiences and skills to tackle climate change and implement solutions.
Check out the NYCP calendar for more info.


Please consider donating to NYCP here to support our work!

Heat Pumps!

Join us tomorrow!
Thursday, February 7, 7:00 PM – 8:30 PM
Don’t miss out on
Chili, Cider & Heat Pumps! 


New Paltz Village Hall
25 Plattekill Ave, New Paltz, NY 12561
Warm up with Chili, Cider and HEAT PUMPS at this workshop on new heat pump technologies for your building and water system, with Hugo Jule & the HeatSmart Ulster-Sullivan team. Learn how you don’t have to give the oil or gas company your money to keep warm anymore!
 Air source and ground source heat pumps – and heat pump water heaters – are mainstream and a cost-effective investment (and even better if they’re powered by solar panels)! Find out what kinds of buildings are best for them, how to shop, finance and maintain heat pumps at this free and friendly forum.Click here for more info & to RSVP.
 Save-the-Date for this year’s
Climate Solutions Summit at SUNY New Paltz on Saturday, September 21st!

The Summit provides an opportunity for organizers and communities to come together to share projects, case studies, resources, experiences and skills to tackle climate change and implement solutions.
Click here for details on our event calendar!

Rally & petition for a Million Solar Strong!


 

On Tuesday, September 18th, join us to Rally for a Million Solar Strong NY on the Million Dollar Staircase in the NYS Capitol.

 

We’re calling on Governor Cuomo to build a #SolarStrongNY with one million homes powered by solar over the next five years! A million homes powered by solar will create local jobs, save New Yorkers money on utility bills, increase economic investment, cut harmful air pollution, and accelerate an equitable transition to our clean energy future. 

 

What: Rally for a Million Solar Strong & Petition Delivery

When: Tuesday, September 18th, 12PM

Where: NYS Capitol Building, Million Dollar Staircase

Who: NYS Elected Officials, Solar Industry Representatives, MSS Campaign Members, Home Owners, Home Renters, Housing Developers and Business Owners

 

RSVP and Share on Facebook: https://www.facebook.com/events/223908018446318/

Sign the petition to Governor Cuomo: https://www.solarstrongny.org/take-action/

 

What’s Going on With Your Central Hudson Bill?

What’s going on with your Central Hudson bill?
We’re conducting a survey to find out

In the past few weeks it has been brought to our attention that a number of Central Hudson customers have received unusually high bills. Although the timing of these bills seemed to coincide with the filing of the Joint Proposal for the new Rate Plan, this is just a coincidence. The new rates will not go into effect until July of this year, after the Public Service Commission has approved the plan.

The unusually high bills appear related to electricity usage for the month as recorded by the company, and not to rates. (Delivery rates are approved by the PSC and do not change month to month; and supply rates, which are set in the market, did not vary that significantly.) We have heard directly from some customers that Central Hudson’s recorded usage for their home appears much higher than is typical for their household consumption. We’ve seen some fluctuations that can be explained by the unusual weather and the effects that has had on the estimation system and meter reading schedule, but there are some that can’t be explained by this. We want to get a sense of whether other customers have had the same experience with their recent bill, so that we can get to the bottom of this and hold the company accountable if customers are being overcharged.

Please take a moment to look at the usage bar chart on your bill. If there was a significant usage jump in one of the past few months, please consider filling out our survey. Your personal information will not be recorded or shared.

Participate in the Largest Climate Action Ever Directed at Cuomo

In a time of record-shattering hurricanes, with our federal government bought and sold by the fossil fuel industry, states like New York must lead fight against climate change. But for all his talk, Governor Cuomo is taking too little action.

On April 23rd, New Yorkers from across the state are descending on Albany to tell Governor Cuomo to walk the talk on climate. From Rochester to Rensselaer, Buffalo to Brooklyn, we will join forces to demand 3 bold actions: to fight climate change, create jobs, and ensure justice for all!

WE NEED YOU TO JOIN US!

On April 23rd, join this energetic and family-friendly march and rally outside the Capitol building that will include an opportunity to participate in a civil disobedience action. This will be the largest climate rally ever directed at Cuomo in Albany. Join us in demanding that #CuomoWalkTheTalk and get New York #OffFossilFuels!

Make sure you’ve registered for Albany! Go here to do it:

cuomowalkthetalk.org

Connect with the event others on Facebook:

https://www.facebook.com/events/310284546148736/

See you soon!

Sincerely,

Resist Spectra

NOW IS THE TIME

Now Is The Time For Your Participation.

On April 23 thousands of New Yorkers will gather in Albany to press Governor Cuomo to walk the talk on climate.

In his 2017 State of the State address, Governor Cuomo promised to “double down on the fight against dirty fossil fuels”. Instead, and on his watch, there has been an expansion in the construction of gas pipelines, compressor stations, and power plants across the state. Fleets of compressed-gas trucks now ply rural roads, and explosive oil trains run alongside residential communities. Moreover, the state continues to import frack waste from Pennsylvania. Medical associations have documented increased cancer rates and respiratory problems as a result of the buildout, with pregnant women, children, and the elderly most at risk.

Enough is enough! It’s time to step up our resistance to the expansion of fracked gas infrastructure and demand that Governor Cuomo halt these projects and move the state forward with a rapid and just transition to 100% renewable energy.

For the past year, Sane Energy Project has played a leadership role in organizing the April 23mass action in Albany. In the coming weeks we’ll be hosting six regional meetings and an Action Camp to prepare people for the march and rally, and, for those willing to risk arrest, nonviolent civil disobedience.

Your donation now will support these meetings and help us continue to mobilize thousands of people to turn up the volume on April 23 and move New York State to clean energy NOW.