While the IRS clarified that the clean energy investment tax credit would cover eligible upgrading equipment integral to biogas properties, the industry could get a boost if final rules allow separate ownership of the equipment, stakeholders told the agency Wednesday.
The Internal Revenue Service made the clarification in a correction to be published Thursday in the Federal Register in response to the industry's initial concerns. But the current proposal still requires that a single entity owns the clean energy facility in order for it to qualify for the tax credit under Internal Revenue Code Section 48 , the stakeholders said during the agency's hearing on the proposed rules implementing the credit. The requirements are a problem for biogas or renewable natural gas, or RNG, production facilities that tend to have different ownership structures, they said.