N-2014-39: Section 1603 Sequestration and Its Effect on the Investment Tax Credit and the Production Tax Credit
Internal Revenue Service (IRS) sent this bulletin at 06/10/2014 02:07 PM EDT
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Issue Number: N-2014-39Inside This IssueNotice 2014-39 answers two questions for recipients of Section 1603 Awards. First, this notice provides that the Section 1603 Payment resulting from sequestration during the affected time period does not affect the amount of the Section 1603 Award or the basis of the specified energy property taken into account for purposes of determining the Section 1603 Award. Consequently, taxpayers may not partition the basis of property for which they receive a Section 1603 Award and claim a tax credit under section 45 or 48 of the Code on any part of the basis of the same property. Second, this notice provides that under section 48(d)(3)(B), taxpayers must reduce the basis of the specified energy property by 50 percent of the amount of the actual Section 1603 Payment. Thank you for subscribing to IRS GuideWire, an IRS e-mail service. If you are a Tax Professional and have a specific concern about your tax situation, call the IRS Practitioner Priority Service 1-866-860-4259. This message was distributed automatically from the IRS GuideWire mailing list. Please Do Not Reply To This Message. |