PRODUCTION TAX CREDIT ~ Clarification of Notice 2013-29

SECTION 1. PURPOSE 
 The American Taxpayer Relief Act of 2012, Pub. L. No. 112-240, 126 Stat. 2313 
(ATRA), modified the definition of a qualified facility under section 45(d) of the Internal 
Revenue Code by replacing the placed in service requirement with a begin construction 
requirement. A taxpayer will be eligible to receive the renewable electricity production 
tax credit (PTC) under section 45, or the energy investment tax credit (ITC) under 
section 48 in lieu of the PTC, with respect to a facility if construction of such facility 
begins before January 1, 2014. Notice 2013-29, 2013-20 I.R.B. 1085, provides two 
methods to determine when construction has begun on such a facility. This notice 
clarifies Notice 2013-29 regarding (i) the determination of whether a taxpayer satisfies 
either of those methods with respect to a facility, (ii) the applicability of the “master 
contract” provision in that notice, and (iii) the effect of a transfer of a facility after 
construction has begun. 
Link here to read complete IRS Clarification