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FERC Announces Tax Reform Actions and Eliminates Income Tax Allowance for Master Limited Partnerships
By McDermott Will & Emery and Martha Groves Pugh on Mar 23, 2018
Posted In FERC, Natural Gas, Power Markets, Project Development and Finance, Tax
FERC announced actions in response to the 2017 tax reform legislation and a revised income tax policy, which eliminates the income tax allowance for Master Limited Partnerships. Regulated entities should ensure that they comply with FERC’s orders regarding the treatment of income taxes and consider whether to file comments on the proposed rulemaking and notice...
By McDermott Will & Emery on Feb 20, 2018
Posted In FERC
On February 15, the Federal Energy Regulatory Commission (FERC) issued a much-anticipated order designed to remove barriers to electric storage resource participation in organized wholesale electricity markets. The order—dubbed Order No. 841—creates new rules that require each regional transmission operator (RTO) and independent system operator (ISO) to revise its tariff to establish a “participation model”...
By McDermott Will & Emery on Jan 23, 2018
Posted In Environmental, Renewables, Tax
Yesterday, the US Trade Representative announced that President Trump approved recommendations to impose a safeguard tariff on imported solar cells and modules under Section 201 of the Trade Act of 1974. The tariff will be in effect for the next four years at the following rates: This tariff is the result of petitions filed in...
By McDermott Will & Emery on Jan 9, 2018
Posted In FERC
On January 8, 2018, the Federal Energy Regulatory Commission (FERC) rejected the Department of Energy’s (DOE) Proposed Rule, which would have required organized wholesale electricity markets run by independent system operators (ISOs) or regional transmission organizations (RTOs) to establish tariff mechanisms for purchasing energy from eligible “reliability and resilience resources” and mandated a recovery of...
By McDermott Will & Emery, Bradford E. LaBonte, Heather Cooper, Martha Groves Pugh and Philip Tingle on Dec 8, 2017
Posted In Renewables, Tax, U.S. Congress
On December 2, 2017, the Senate approved its version of the Tax Cuts and Jobs Act. The Senate Bill includes the base erosion and anti-abuse tax, a new tax intended to apply to companies that significantly reduce their US tax liability by making cross-border payments to affiliates. Given its potential to disrupt the financing of...
By McDermott Will & Emery, Heather Cooper, Kevin Spencer, Martha Groves Pugh and Philip Tingle on Nov 3, 2017
Posted In Featured, Power Markets, Project Development and Finance, Renewables, Tax, U.S. Congress
Changes to the energy credits proposed in the Tax Cuts and Jobs Act could impact the eligibility of renewable energy projects that had been relying on the guidance previously issued by the Internal Revenue Service. Continue Reading
By McDermott Will & Emery on Nov 3, 2017
Posted In Renewables, Tax
On October 31, 2017, the US International Trade Commission (ITC) released its recommendations to impose a tariff on imported solar equipment. The proposals it issued, however, would result in duties substantially lower than those sought by the petitioners. The ITC’s four commissioners issued several remedy recommendations, including, at the high end, a 35 percent tariff...
By McDermott Will & Emery on Oct 3, 2017
Posted In FERC, Power Markets
On September 28, 2017, the US Department of Energy (DOE) submitted a proposed rule to the Federal Energy Regulatory Commission (FERC) that, if implemented, could reshape organized wholesale electricity markets. Citing electric grid reliability and resiliency issues like the 2014 Polar Vortex and recent hurricanes, DOE asked FERC to enact a new compensation system for...
By McDermott Will & Emery, Kevin Spencer and Roger J. Jones on Jul 28, 2017
Posted In Renewables, Tax
In a highly-anticipated Technical Advice Memorandum (TAM) dated March 23, 2017 and released on July 21, 2017, the Internal Revenue Service (IRS) ruled that two taxpayers who had invested in a Limited Liability Company that owned and operated a refined coal facility (the LLC) were not entitled to refined coal production credits they had claimed...
By McDermott Will & Emery on Jul 10, 2017
Posted In Project Development and Finance
On June 30, 2017, the Massachusetts Department of Energy Resources (DOER) announced that Massachusetts would adopt an aspirational 200 megawatt-hour (MWh) energy storage target to be achieved by January 1, 2020. The target is the second largest in the nation, although it is far lower than California’s 1.3 gigawatt storage mandate. Still, Massachusetts’ storage target...