New IRS guidance addresses when construction begins for purposes of the carbon sequestration tax credit. Taxpayers that began construction on a qualified facility or carbon capture equipment by satisfying either a “physical work test” or a “five percent safe harbor test” before the effective date may use it as the date that construction began. A taxpayer that began construction on a qualified facility or carbon capture equipment before the effective date under both tests may choose either method (but not both) for the purpose of applying the beginning of the Notice’s construction rules. These provisions are effective on March 9. To read IRS Notice 2020-12: https://bit.ly/2HFSI0H – Call or visit our website for more information! www.mjscpa.com/
